Two of the Bank of England's nine-strong Monetary Policy Committee unexpectedly opposed this month's decision to raise interest rates by a quarter-point to 5.0 per cent.
Minutes from the November 8-9th meeting published today showed BoE Deputy Governor for Monetary Policy Rachel Lomax joined David Blanchflower in voting to hold rates steady at 4.75 per cent.
Analysts had predicted only Mr Blanchflower's opposition, forecasting an 8-1 vote. "Rachel Lomax opposed the rate hike which may suggest there is less momentum on the committee than feared for another interest rate hike in a few months' time," said Philip Shaw, economist at Investec.
Sterling fell against the dollar and euro and interest rate futures rallied after the minutes as investors scaled back bets that rates have further to rise.
Many economists expect steady rates throughout 2007 but a significant number predict another rise as early as February.
The minutes showed most of the committee had judged keeping rates on hold would mean that inflation would exceed the 2.0 per cent target two years out.