Speaking to Bloomberg, David Miles said the sensitivity of borrowers to changes in interest rates reinforced the case for a “gradual” pace of tightening and there “was a case for beginning the journey now”.

He said the British housing market was based on shorter-term fixed rate loans and a higher proportion of adjustable rates than in the US. This meant that sharp policy moves by the US Federal Reserve would not have as dramatic an impact on debt affordability. “That’s not the case in the U.K. where it really has a big impact very quickly,” he added.

He said these were the considerations which had been playing on his mind in recent meetings as the time to increase rates approached. But he decided to vote against a rate rise which meant only one member, Ian McCafferty, voted for an increase.

“Sterling had gone up a bit, oil prices had fallen a bit, there were somewhat ambiguous signals from the labour market, but on balance it was a set of economic news that probably reduced at least the near-term inflation profile by a non-trivial amount,” said Miles. “For me that was what made the decision ultimately one to keep policy on hold.”

Warning to households

Meanwhile, The Money Advice Trust, the charity which runs National Debtline, issued a warning to borrowers following the decision to hold the Bank Base Rate last Thursday. It said that while borrowers may have “a little more time” until the anticipated rise next spring they should not take “false comfort” from the news.

Jane Tully, head of insight and engagement, said: “There remains only a relatively short window for households to prepare for the impact that higher interest rates will have on their finances.

“Our message to borrowers is clear. Whether you have a mortgage, personal loan or outstanding balances on credit cards – interest rates are going to rise and it is highly likely you will have extra costs to pay.”

Tully said that renters would not escape the pressure of rising interest rates despite not owning their own home. She said landlords would pass on their higher mortgage costs to their tenants who had already been squeezed by sharp rent increases in the last few years.