ANOTHER rise in the cost of borrowing looks increasingly likely after it emerged that two members of the Bank of England's rate-setting committee called for an increase at its last meeting.

Minutes of this month's meeting of the monetary policy committee (MPC) showed two members voted for an increase, compared with only one in last month.

They were outvoted by the rest of the committee of nine, who said the bank could afford to wait for more evidence on inflation.

Interest rates were left at 4.75 per cent for the seventh consecutive month following a number of increases last year.

Sir Andrew Large and Paul Tucker argued in favour of rates moving up to five per cent this month, while only Mr Tucker broke ranks in February.

The MPC said risks discussed at last month's meeting had "neither crystallised nor clearly diminished".

There was still little proof of inflationary pressures in the supply chain passing through into wages or consumer prices, it said.

Evidence still suggested uncertainty about a pick-up in consumer spending.