Rupert Pennant-Rea I was quite surprised. But I think it’s the right thing. There was a danger they would get behind the curve if they hadn’t done it today. The chances of their being able to influence the wage round would have reduced day by day.

My voting for a rate rise was no great science: it was luck as much as anything. From now on, I wouldn’t rule out another rise relatively soon.

Sir Steve Robson Everything was pointing in this direction. With inflation stuck above target, the service sector growing at its fastest rate for ten years, broad money growing quickly and unemployment ticking down, it was hard to find any indicator saying “don’t”.

If the world economy carries on its stable footing the probability is of another rise this year. If the global imbalances come home to roost, then we could end up with rates lower than where we are now.

Anatole Kaletsky The timing of this move was surprising, but the direction was not. I had expected a rate hike in February and this was also the City’s predominant view.

The Bank’s decision to move earlier and thereby surprise the markets has suggested to many analysts that the MPC “knows something” about next week’s inflation figures which is not yet apparent to the markets.

I think this is unlikely. More probable is that the MPC members simply saw economic growth accelerating to well above expectations, the property market booming and wage settlements creeping up. My view is that there will be at least one further increase, to 5.5 per cent, in April or May.

Sushil Wadhwani It is difficult to say why the MPC moved today as they have access to information that is not public. However, on the basis of the information we do have, the timing of this move is surprising. It is not obvious why the committee could not wait until completing the Inflation Report in February.

It is not obvious that the economy needed another rate hike — unemployment is rising, lower oil prices should moderate inflation expectations and there are still downside risks relating to the US economy.

Bronwyn Curtis They were pre-emptive — which is what they are meant to be.

The new data from the past month had concerned me, particularly the acceleration in the purchasing managers’ index driven by higher than expected services growth. On balance, I thought it was probably worth waiting until next month. But with the wage negotations it’s the first two months of the year that are the most important, and you don’t want inflation expectations to feed through.

Now we have had the hike I don’t think they will do it again in February.

Martin Weale I project that the economy grew by 0.7 per cent in the three months to December. An interest rate increase was needed, whether this month or next.

Sir Alan Budd If one takes the normal incremental approach to decision-making and thinks about what they said at the last meeting and what numbers we have seen since then, it’s hard to see what would have justified a change.

Something has happened to make them think that the risks are no longer evenly balanced. But they would have seen the inflation numbers (ahead of their publication next week) and it’s possible that they are significantly higher than the market was expecting, including the possibility that it’s over 3 per cent and that they are going to have to write a letter to the Chancellor.

Claudio Costamagna I am surprised! Very surprised.

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