The Bank of England's nine-strong Monetary Policy Committee (MPC) voted unanimously in favour of a quarter-point rise in the interest rate to 5.5 per cent earlier this month.

In minutes from the meeting on May 9 and 10, it is also revealed that some members proposed that the UK borrowing cost should be increased by half a point, bringing it to 5.75 per cent, because of concerns over rising inflation. The market had expected the MPC to vote eight to one in favour of a quarter-point increase, with David Blanchflower singled out as the likely dissenter.

Last month, Mervyn King, the Bank's Governor, was forced to write a letter to Gordon Brown after inflation reached 3.1 per cent.

However, members seeking a half-point rise saw their concerns balanced by their colleagues. who argued that the MPC should move cautiously, given “more than usual uncertainty” on predicting inflation in the medium term.

While it is clear that another interest rate rise is on the way, the MPC’s comments suggest it will not happen immediately.

It said: “If the Committee had been reasonably confident about the need for another interest rate rise soon, then a strong case could have been made for an increase of 50 basis points this month.”

Some market commentators speculate that the borrowing cost could rise by a quarter-point to 5.75 per cent in July and could reach 6 per cent if inflation climbs.

The MPC has increased interest rates four times in ten months.

The minutes show that, while the committee is seeing signs of the housing market slowing down, it admits: “The full impact of the increases in Bank Rate since August 2006 had not yet been passed through to the average mortgage rates.”

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