Bank of England split over rate rise

In fact, the Bank of England’s monetary policy committee was divided 7-2 in favour of maintaining rates at current levels, but the varying opinions within the group are seen to suggest an increase could happen as 2007 progresses.

And with millions of Brits facing credit card debt repayment increases in the event of a further hike, the bank has advised that it will wait to assess the “full effects of the past tightening”.

Minutes from the committee’s meeting earlier this month stated: “Was difficult to judge whether, and if so by how much, policy might need to be further tightened to keep inflation on track to meet the target.”

Recent research from MoneyExpert suggested that people assessing their debt management options are increasingly looking towards secured lending in light of recent interest rate rises.