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| Version 1 | Version 2 |
|---|---|
| UK rate rise decision 'unanimous' | UK rate rise decision 'unanimous' |
| (10 minutes later) | |
| The Bank of England's decision to raise interest rates by a quarter of a point in May was unanimous, minutes of the rate-setting meeting show. | The Bank of England's decision to raise interest rates by a quarter of a point in May was unanimous, minutes of the rate-setting meeting show. |
| Lingering inflation risks prompted the unanimous decision to hike interest rates to 5.5% - taking the cost of borrowing to six-year highs this month. | Lingering inflation risks prompted the unanimous decision to hike interest rates to 5.5% - taking the cost of borrowing to six-year highs this month. |
| But some members of the Monetary Policy Committee (MPC) had considered voting for a half-point rise, the minutes say. | |
| They decided to wait and see what effect the quarter-point rise had. | |
| Britain's central bank has not raised interest rates by more than 0.25 percentage points at a time since 1995, two years before it gained its independence from the government. | |
| No member of the MPC has even voted for a half-point rise in seven years and a move to do so would have been like hitting the panic button, analysts say. | |
| More hawkish | |
| "Some members argued that, given the uncertainties around both the outlook for inflation and the impact of interest rate changes, it was better to move cautiously," the minutes said. | "Some members argued that, given the uncertainties around both the outlook for inflation and the impact of interest rate changes, it was better to move cautiously," the minutes said. |
| "Other members were concerned that any excessive movement in rates could create downside risks to growth." | "Other members were concerned that any excessive movement in rates could create downside risks to growth." |
| The comments were more hawkish than analysts had forecast, with market experts now certain that another interest rate rise is imminent - perhaps as soon as June, as the Bank of England remains concerned over increasing pricing and wage pressures. | The comments were more hawkish than analysts had forecast, with market experts now certain that another interest rate rise is imminent - perhaps as soon as June, as the Bank of England remains concerned over increasing pricing and wage pressures. |
| "We think the risk is evenly split between the June and July meetings as it would be too late to leave the next hike until August," said David Brown, an analyst at Bear Stearns. | "We think the risk is evenly split between the June and July meetings as it would be too late to leave the next hike until August," said David Brown, an analyst at Bear Stearns. |
| "The risks also remain tilted to rates peaking at 6%." | "The risks also remain tilted to rates peaking at 6%." |
| The pound strengthened against the dollar, trading at $1.975 after the minutes and hit a fresh 2-week high against the euro at 67.95 pence. | The pound strengthened against the dollar, trading at $1.975 after the minutes and hit a fresh 2-week high against the euro at 67.95 pence. |