Bank of England moves closer to August interest rate rise

Chief economist, Andy Haldane, joins two others on MPC in pushing for an increase

The Bank of England raised the chances of an August rate rise after its chief economist joined two other members of its rate-setting monetary policy committee voting for an immediate hike in borrowing costs.

For the first time since joining the MPC four years ago, Andy Haldane broke ranks with the majority on the nine member rate-setting panel to join Ian McCafferty and Michael Saunders in calling for an increase in interest rates. The move is likely to heighten speculation that Threadneedle Street could be gearing up for a rise in two months' time.

Related: Bank of England leaves interest rates on hold, but chief economist pushes for a rise - business live

One of Gordon Brown's first moves as chancellor in 1997 was to hand control of interest rates to an independent Bank of England. Previously the cost of borrowing had been decided between the chancellor and the governor of the Bank.