BoE governor ‘wanted interest rate rise’

According to the minutes of the most recent meeting of the rate-setting monetary policy committee (MPC), Mr King was one of four members who wanted to see the cost of borrowing increase in June.

However, the five remaining members of the MPC felt an increase was not yet necessary, but many experts are now convinced the pressures on UK consumers facing debt management problems are likely to rise next month.

Chief UK and European economist at Global Insight, Howard Archer, commented: “The minutes give the impression that for some of the other MPC members it was a question of when to raise interest rates again rather than if.”

“There is clearly a very real risk that interest rates will reach six per cent before the end of the year,” he added.

Millions of homeowners across the country have had their financial pressures heightened in recent weeks as a result of the BoE’s decision to increase the cost of borrowing to 5.5 per cent in May.