Bank of England chief economist Spencer Dale joined Andrew Sentance and Martin Weale in voting for higher UK interest rates in February, minutes to the Bank of England's last meeting showed today.
The minutes also suggested that some of those opposed a rate hike this month would consider it if the economy shows signs of picking up after an unexpected fall in output at the end of 2010.
'Most members agreed that the balance of risks to inflation in the medium term relative to the target had moved upwards in recent months and that the case for withdrawing some of the current exceptionally accommodative monetary policy had consequently been strengthened,' the minutes said.
Economists had expected a repeat of last month's 7-2 vote, though another member joining the BoE's hawkish camp had been seen as a possibility after BoE Governor Mervyn King said last week that the Monetary Policy Committee was unusually divided.
Inflation is currently 4%, double the BoE's 2% target, but last week the central bank forecast it would fall below target in two years if interest rates rise gradually.
Dale and Weale both called for a 0.25-point increase in the BoE's record low 0.5% interest rate, while Sentance said the time had come for a half-point rise. Dale and Weale favoured a smaller rate increase than Sentance because they believed there was greater uncertainty about the economic outlook. Sentance was concerned that firms were passing on higher costs.
The minutes follow a BoE quarterly Inflation Report which suggested rates may have to rise two or three times this year for the central bank to have the best chance of getting inflation back on track in the medium term.
UK mortgage approvals remain near lows
Separate figures show that the number of mortgages approved for house purchase in the UK remained close to a two-year low in January as activity in the property market remained subdued.
Just 28,932 loans were approved for people buying a property during the month, broadly unchanged from December's figure, which was the lowest since January 2009, according to the British Bankers' Association.
But there was a 5% jump in the number of people re-mortgaging, as homeowners opted for fixed-rate deals as speculation increased that the Bank of England would raise interest rates sooner than previously thought.
