No change in MPC member voting for rate increases

by Aaron Strutt

May 20 2011

Three members of the Monetary Policy Committee voted for a rate rise in May, the same number as April, the minutes from the meeting show.

Six members voted to keep the base rate at its historic low of 0.5%, while Andrew Sentence opted to increase it by 0.5% and Spencer Dale and Martin Weale voted to increase it by 0.25%, as they did in April.

Inflation hit 4.5% in April and Bank of England governor Mervyn King has warned that it could increase to 5% by the end of the year, but he has given no clear indication of when interest rates will rise.

Mr King is quoted as saying: "Although inflation fell to 4% in March, it remains uncomfortably high and well above the 2% target. And there is a good chance if utility prices rise late in the year, that inflation will reach 5% before falling back throughout 2012 and into 2013."

May 20, 2011