The Bank of
The MPC said it expected the bank rate to remain below pre-crisis levels of around 5% for some time to come but said that it could offer no guarantees because of the uncertainties surrounding the economy.
"In other words, the committee's guidance on the likely pace and extent of interest rate rises was an expectation, not a promise."
The August report laid bare the dilemma faced by the MPC, which is trying to reconcile rapidly falling unemployment with very weak wage growth.
The MPC sharply revised down its forecasts for pay growth, predicting average wage rises of 1.25% by the end of 2014, compared with its May forecast of 2.5%.
With inflation expected to remain just below the 2% target by the end of this year, it means real pay is expected to fall for the rest of the year.
The City is likely to interpret the August report as a signal that the MPC is becoming increasingly divided about the appropriate timing of the first rate rise.
The Bank noted in the report: "Not surprisingly, there is a wide range of views on the committee about the likely degree of slack. Uncertainty about how much slack there is has increased in recent months, in part reflecting labour market out turns."
The bank revised up its growth forecast for 2014 to 3.5% from 3.4%, and for 2015 to 3% from 2.9%.
Most Popular Stories
- Kurdish Militia Still Lack Weapons, Training
- Pickup Discounts Boost September Auto Sales
- Ebola Victim Was Sent Home by Dallas Hospital
- Dallas Parents Fear Students Exposed to Ebola
- Review: Pay by Phone or Just Keep Using Plastic?
- Lexus Luxury Compact Sedan Wins Buyers
- Group Offers Online Help for College Students
- N.Y. Ups Awards of State Contracts to Minorities
- Why the Bond Market Isn't as Safe as You Think
- Baker Hughes to Disclose Fracking Chemicals