Minutes released by the Bank of England's Monetary Policy Committee this morning revealed a more hawkish stance than investors expected, helping to lift the flagging UK currency.
The Bank of England's Monetary Policy Committee remained split 7-2 against raising interest rates this month but took a gloomier view of the country's economic prospects.
The Bank of England's chief economist has suggested interest rates could remain low for a protracted period without causing inflation to spike.
The Office for National Statistics has revised second quarter growth figures in the UK up from 0.8% to 0.9% in its final estimate.
UK unemployment fell to its lowest level in six years in the three months to July, according to the latest figures from the Office for National Statistics (ONS).
Two members of the Bank of England's Monetary Policy Committee again voted to raise rates this month, minutes from the latest meeting show.
The Bank of England will hold off on hiking rates for six months if it does not act by November, leaving a "clear run" for investors until the general election, Richard Buxton has predicted.
US markets continued to edge higher on Wednesday, despite the Federal Reserve's latest minutes suggesting an interest rate hike may come sooner than expected.
Two members of the Bank of England's Monetary Policy Committee voted for a 25bps rate hike this month, latest minutes show - the first call for hikes in over three years.
Fund managers have a "critical" imperative to warn clients about the risks of chasing yield despite low volatility, former monetary policymakers have warned.
Mark Carney: One year on
The outgoing Bank of England (BoE) deputy governor Sir Charlie Bean has said it is "reasonable" to expect interest rates to return to 5% within a decade.
Bank of England Governor Mark Carney has said the 'new normal' for interest rates in the UK will be around 2.5%, a level he predicted they may reach by 2017.
The absence of any relationship between the monetary base and inflation means no one has any real idea of where the economy is heading. So how can the authorities control inflation and sustain above trend growth? John Clarke, chief investment officer...
The chance of a rate rise this year has moved a step closer after one of the Bank of England's policymakers said a rise in the cost of borrowing should happen "sooner rather than later".
Sterling has spiked further against the dollar and other currencies after strong retail sales and minutes of the latest Monetary Policy Committee meeting stirred up the rate hike debate.
When will UK interest rates peak?
Bank of England Governor Mark Carney has tried to defuse expectations of an imminent rate hike by saying it would "not be the right tool" to deal with a booming housing market.
Given the nature of the financial crisis and the depth of the accompanying recession, the recovery process was always going to be a hard grind.
The governor of the Bank of England, Mark Carney, has warned the 2% target for inflation became a "dangerous distraction" for the UK's policymakers.
A leading Bank of England policymaker has said the base rate is likely to rise in "spring 2015" in unusually revealing comments made this afternoon.
The Bank of England has today said it will not hike rates "for some time to come" - with the base rate potentially at 2% by 2017 - as governor Mark Carney begins to alter his forward guidance policy.