Sentiment for a further interest rate rise in the New Year has been dampened by the minutes of the Bank of England’s Monetary Policy Committee meeting, which show that two of the nine members voted against November’s rise.

A few economists are still thinking of a New Year rate rise, but the majority now predict that rates have peaked, Reuters reported.

The two dissenters were Governor Rachel Lomax and David Blanchflower who both voted for keeping rates steady.

One of them felt “the need for a rise was less pressing,” the minutes said. “The current spike in inflation was mainly related to large gas and electricity price increases, which were still more than offsetting the recent fallback in petrol prices.”

“Once their immediate impact had dissipated, CPI inflation was likely to fall back sharply next year,” he said.

Some moderation in household spending growth from its strong rate in the second quarter was necessary if the MPC’s central projection for the November Inflation Report were to materialise, said the minutes. Although there had been “tentative signs that the August Bank Rate increase was beginning to have some effect.”

"This division within the MPC, along with the latest results showing inflation is steady at 2.4% and lower than the 2.6% anticipated, gives hope to the housing market that the Bank may refrain from raising rates again in the near future,” commented Assetz managing director, Stuart Law.