The Bank of England (BoE) has no urgent need of cutting UK interest rates and should assess the markets for a while longer before taking such a decision, Monetary Policy Committee member Martin Weale said on Monday (18 July 2016).

Last week, the BoE caught investors and economists by surprise as it opted to kept interest rates unchanged.

Britain's central bank had widely been tipped to cut rates for the first time in seven years in its first meeting after the pro-Brexit vote, but instead signalled its intention to sit tight for now. However, Threadneedle Street officials hinted more stimulus could be on its way next month, possibly as a "package of measures".

However, Weale stressed that while the markets and investors expect the BoE to take action next month, the decision might not be as straightforward as expected.

"This uncertainty points to the argument that we should wait for firmer evidence before making any policy change and least in the absence of any strong arguments for an immediate change," he said. Weale, who will leave the MPC later this year to be replaced by Citigroup economist Michael Saunders, also dismissed fears that the markets could be negatively affected if the BoE did not cut interest rates next month.

"The Old Lady of Threadneedle Street is not a nurse to markets," he added.

"In contrast to the experience of 2008, I do not have any sense that either consumers or businesses are panic-struck and, as I observed, there have been no material signs of financial panic.