In a sign of mounting pressure on policymakers to raise the cost of borrowing, monetary policy committee member Tim Besley voted for a 0.25 per cent increase to help "ensure the committee's credibility in light of the current and prospective increase in CPI (consumer price index) inflation".It was the first vote for a rate hike since July last year. Seven of the committee's members voted to keep rates steady at 5 per cent, with David Blanchflower voting for a rate cut.The minutes revealed that the committee discussed whether raising interest rates could send "a strong signal" that it was focusing on inflation and remained determined to bring it back to target in the medium term.At the time of the meeting, inflation was at 3.3 per cent, but later spiked to 3.8 per cent.There were also a number of arguments for keeping rates steady, the minutes showed. These included more gloomy surveys on economic activity during the month, which made it possible that higher interest rates might not be necessary.

The minutes said: "An increase in base rate in the current circumstances when confidence was low and the financial sector fragile could impart a downward momentum to the economy that risked a significant undershoot of inflation in the medium term.Keeping bank rate at 5 per cent.

A Bank of England rate-setter voted to hike interest rates this month amid concerns about soaring inflation. In a sign of mounting pressure on policymakers to raise the cost of borrowing, monetary policy committee member Tim Besley voted for a 0.25 per cent increase to help "ensure the committee's credibility in light of the current and prospective increase in CPI (consumer price index) inflation".

It was the first vote for a rate hike since July last year. Seven of the committee's members voted to keep rates at 5per cent.