THE latest rise in the cost of borrowing was decided unanimously by the Bank of England's Monetary Policy Committee (MPC).

All nine MPC members voted to raise the bank's base rate by a 0.25 per cent to 4.75 per cent earlier this month in an attempt to keep inflation on track to meet the Government's target of two per cent.

Although a number of rate rises since November have started to moderate spending, the minutes showed one member thought a rise would help reduce potential problems caused by the rapid growth in household debt.

The minutes also showed members reached their decision with the help of the bank's quarterly economic report, which said inflation would hit its two per cent target in two years' time without the need for drastic rate rises.

The MPC said there was nothing in the inflation report or in any other news this month to significantly change the picture of strong UK economic growth.

In the UK, consumption growth seemed slightly weaker than expected, but demand was still likely to grow faster than supply.