INSTANT VIEW: Bank split three ways on rate direction

LONDON (Reuters) - One Bank of England policymaker wanted to hike rates this month, another wanted a cut but the remaining seven chose to keep borrowing costs steady as both the inflation and growth outlook had worsened.

Following are a selection of analysts' views on the minutes of the Bank's July 9-10 policy meeting, which showed arch hawk Timothy Besley wanting an immediate quarter-point hike to 5.25 percent and dove David Blanchflower arguing a cut was needed to prevent a recession.

ANALYST REACTION

PETER NEWLAND, LEHMAN BROTHERS

"The fact that they discussed the possibility of a rate hike and one member voted for it, underlines that they are still concerned with the inflation outlook.

"It's enough to show markets that their credibility in targeting inflation is preserved. There aren't any hints you'd get rate hikes.

Since the last rate decision, oil prices have come off significantly and average earnings numbers are weaker -- consistent with rates staying on hold for the time being."

RUSSELL JONES, RBC

"The outlook is very uncertain and the minutes reflect that. It's a tough place for the Bank of England to be with inflation way above target and growth hitting the wall."