LONDON—Bank of England officials grew gloomier about the U.K.’s economic prospects in October, citing increasing headwinds from overseas and a slowdown at home, according to minutes of this month’s policy meeting published Wednesday.
The minutes are the latest signal that BOE officials are unlikely to raise interest rates in the U.K. until well into next year. Traders in interest-rate derivatives now predict the BOE will raise borrowing costs next summer—if not later—after this year forecasting an increase in the first quarter of 2015.
The British pound dropped by 0.3% against the dollar after the release, extending earlier losses, to reach $1.6023.
The BOE’s Monetary Policy Committee agreed this month to leave the central bank’s benchmark interest rate at a low of 0.5% and the total size of its bond-buying stimulus program unchanged at £375 billion ($604 billion).
The minutes record that MPC members Martin Weale and Ian McCafferty repeated their call for a rise in the BOE’s benchmark rate to 0.75% but were defeated by the remaining seven members of the nine-member panel, who voted to keep the rate unchanged. All nine agreed to leave the BOE’s bond portfolio untouched.