A member of the Bank of England’s Monetary Policy Committee voted for base rate to increase this month, the first call for a rate rise in almost two years.
Minutes from the MPC meeting earlier this month show that Andrew Sentance voted to increase the base rate by 0.25 per cent, the first time a rate rise has been suggested since August 2008.
The remaining members voted to keep rates on hold.
Interest rates have now been at the record low of 0.5 per cent since March 2009.
The minutes reveal that some MPC members had concerns over whether the consumer prices index measure of inflation would return to its 2 per cent target in the medium term.
Chancellor George Osborne pledged to continue to target inflation at 2 per cent in his emergency Budget speech yesterday, but warned that inflation will reach 2.7 per cent by the end of the year.
CPI inflation fell to 3.4 per cent in May from 3.7 per cent in April, while inflation as measured by the retail prices index rose by 5.1 per cent in May from 5.4 per cent in April.
The minutes also show that one unnamed MPC member thought now was the right time to begin to withdraw from the Bank’s £200bn quantitative easing programme, given the continued above target rate of inflation.
But other members felt that uncertainty around the Budget meant that there was no need to change monetary policy this month.