Hike likely in repo rate

In the last three years, the Monetary Policy Committee (MPC) was split down the middle only twice.

In March 2016, three members voted for higher interest rates and three favoured an unchanged stance. The panel increased its key rate by 25 basis points.

In September 2017, half the members voted to hold the rate and half preferred looser policy. The outcome was an unchanged repurchase rate.

The MPC has had seven members for its last four meetings, but the panel is back down to six and that raises the possibility of another 50/50 split.

This week it seeks to balance steering inflation to 4.5% with the needs of an economy that fell into recession in the second quarter.

It will announce its decision on borrowing costs tomorrow.

Of 21 economists in a Bloomberg survey, 11 forecast the repurchase rate will be increased to 6.75% and the rest predict the rate will stay at 6.5%.