Bank of England boss might maintain key to choice on fee reduce

Andrew Bailey may cast the deciding vote next week when the Bank of England considers whether to slash interest rates.

The nine-person Monetary Policy Committee will meet on Thursday to vote whether or not to cut for the first time in four years.

But now there is talk of a growing possibility of a knife-edge vote, which could see the Governor Bailey, who chairs the group, having to make the ultimate call.

Analysts at investment bank Citigroup think the rate will fall by a quarter-point to 5 per cent. This would be a huge relief for millions of under-pressure home owners.

Benjamin Nabarro, chief UK economist at Citigroup, told The Times that the decision would be a ‘tight call’.

He said a slowing in the labour market and declining prices on some goods could be used to justify a cut. ‘The Bank’s radio silence leaves the meeting wide open,’ added Stefan Koopman, economist at Rabobank.

He also predicted a cut but warned: ‘There is a risk that officials may want to see another month of data first.’

Last month seven members voted to hold. Two, Sir Dave Ramsden and Swati Dhingra, voted to cut. They will need to be joined by three more committee members to swing the balance.

Bailey, Sarah Breeden and Clare Lombardelli are the most likely candidates to back a cut.

Higher-than-expected inflation figures this month have hit hopes for a cut. Inflation in June was 2 per cent but it had been expected to drop to 1.9 per cent.