The two-day meeting of the monetary policy - which begins today - is expected to be the last held under the terms outlined by Labour in 1997.

Next week the chancellor is set to use his pre-Budget report to tell the committee to move from a 2.5 per cent RPIX inflation target to a two per cent target on a new standardised European prices measure.

Some economists and trade unions are thought to be concerned that the new inflation measure will downgrade prices-linked benefits rises.