The Bank of England’s Monetary Policy Committee has once again voted to keep the bank rate at 0.5%.

Nick Dixon, investment director at Aegon UK, said: “The Bank of England is clearly in no hurry to increase interest rates, but sterling’s gains against the euro have presented a new and unexpected challenge to the Monetary Policy Committee, which may even mean we see a rate cut in coming months.

“With near-zero inflation, a strengthening currency, and muted wage growth, the question has suddenly become relevant, and as a number of European countries are now exhibiting negative rates, it’s not inconceivable that we see the dovish members of the committee now start to consider a 0.25% rate as an option.”