This leaves the UK with the highest interest rates in the G7 countries.

The monetary policy committee (MPC) voted by a majority of 8–1 to maintain interest rates at 5%. One member voted against the decision, favouring a 0.25% reduction to 4.75%. 

This was a turnaround in voting patterns from the last meeting in July when there was a 4-3 split in favour of a quarter percent rate cut.

The news came as the US cut interest rates by two basis points yesterday to a range of 4.75-5% for the first time in four years.