Risk of double-dip ‘has increased’

However, inflation was still a problem and not all recent news pointed towards a significant undershoot of the Bank’s inflation target in the medium-term horizon, necessary to warrant more quantitative easing, Mr Weale added.

“Looking at what’s happened in the last two months or so anyone would have to say that it is greater than it seemed in July,” Mr Weale said.

The external member of the Monetary Policy Committee said he saw his voting as pragmatic: “So when I come to the October meeting I will have to form view about what is the bigger risk – the high level of inflation that’s well above target and has been well above target for a long time or the fact growth prospects do seem to have worsened in the last few weeks.”

He said he would consider more quantitative easing if he thought inflation would be below target.