Sterling hit as just one MPC member votes for rate rise

Sterling fell 1% against the dollar and euro this lunchtime, as rate rise expectations were pushed back, with just one MPC member voting for an increase this month.

Eight of the nine-strong MPC voted to keep interest rates unchanged in August, at 0.5%, causing the pound to fall after the release of the MPC minutes. Economists had predicted two or three members would support a rise this month, and news the Bank is taking a more cautious stance put immediate pressure on the pound. It was trading around a cent lower against the US dollar, at 1.5508, and a penny weaker against the EUR at £0.70 following the announcement. Commentators now believe it is unlikely there will be an interest rate rise this year, with markets anticipating an increase next F...