MEMBERS of the Bank of England's rate-setting committee were unanimous when they voted in favour of a second consecutive rise in the cost of borrowing.
The report into this month's meeting of the monetary policy committee (MPC) showed members were concerned that inflationary pressures were continuing to build in the UK economy.
The quarter per cent rise, taking interest rates to 4.5 per cent, is unlikely to be the last in the short-term, with economists predicting the next rise will come in August.
The report pointed to rising employment and wages and the gathering pace of the global economic recovery as key reasons for the latest increase.
Consumer debt was also rising faster than wages and increasing rates would leave the economy less exposed to any subsequent shocks.
Andrij Halushka, an economist with the Centre for Economics and Business Research, said the minutes of the MPC meeting pointed to an August rate rise.
"Since there are signs of the housing market and mortgage lending slowing down, the MPC may well decide to give the latest interest rate rise time to work its way through the economy," he said.
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereComments are closed on this article