Three Bank of England policymakers opposed this month's decision to raise interest rates but were outvoted by the other six members of the Monetary Policy Committee, minutes from the July meeting showed today.
Financial markets had expected the 6-3 result but sterling fell and interest rate futures rose as the vote disappointed those in the market who had been expecting more hawkish talk from the central bank.
Nonetheless, the minutes still left the door open for further rate hikes beyond 5.75% as MPC members said they wanted to see the bank's new inflation forecasts next month before making any judgement.
The minutes showed the MPC split into three camps.
'For a majority of members there was a strong case for an immediate rise in Bank Rate of 25 basis points,' the minutes said.
Of that majority, one camp felt a hike was in line with the May inflation outlook but said there was no presumption that further increases would be necessary.
Another, more hawkish group said any delay in raising borrowing costs in July would run the risk that rates would have to peak higher than otherwise needed. But that camp made no immediate judgement on the future path of rates.
The more cautious on the committee said uncertainties about the impact of higher rates and high household debt on consumers pointed to a gradual approach to any tightening following a 1 percentage point hike in interest rates since August.
