Financial Times FT.com

MPC members discussed rate increase

By Delphine Strauss and Peter Garnham

Published: June 18 2008 10:27 | Last updated: June 18 2008 11:55

The Bank of England’s monetary policy committee voted eight against one to hold interest rates at 5 per cent this month, but some members were ready to consider an immediate rate rise to contain inflation, minutes of the meeting showed on Wednesday.

“If there were a serious threat to medium term inflation expectations then a pre-emptive rise in rates would be appropriate. Delay would only increase the eventual costs of bringing inflation back to target,” the minutes said.

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