Another three-way split expected from Bank vote

By Matt Falloon

LONDON (Reuters) - It is unlikely any other Bank of England policymaker has joined David Blanchflower's call for an interest rate cut or Timothy Besley's vote for a hike just yet, but lower borrowing costs look inevitable, analysts say.

A Reuters poll of 24 economists showed most are expecting a repeat of July's three-way split, when a majority of seven kept rates on hold at 5 percent, with Besley and Blanchflower dissenting.

The central bank's quarterly inflation forecasts last week convinced markets that rates will soon be heading lower, but opinion is divided on when the first cut will come.

The Bank said it expects inflation -- currently running at a series high of 4.4 percent -- to fall below the 2 percent target in two years' time if interest rates stay put at 5 percent, and fears of a deep economic slowdown are growing.

"The combination of weaker growth and higher inflation suggests that the voting could be split three ways again at the August meeting," said George Buckley, an economist at Deutsche Bank.

"However, the dovish tone of the Inflation Report makes it likely that more members will have voted for a rate cut than a hike."

Most economists say there is a growing chance of a rate cut before the end of the year, once inflation has peaked.

"BoE policy rates remain restrictive versus current and expected domestic demand conditions," said Lena Komileva, an economist at Tullett Prebon.