MPC ‘divided over interest rate rise’

Official minutes from the most recent MPC meeting show that two of the nine committee members felt it was necessary to increase the cost of borrowing and put further pressure on the million facing debt management difficulties in April.

Despite the lack of unanimity over the issue, the MPC opted to maintain the base rate at 5.25 per cent at least until May, when many observers now expect an increase to be introduced by the bank in light of the most recent inflation statistics.

According to the minutes of the MPC meeting last month a number of members felt that “there was no compelling case for a change”.

Raising the interest rate to 5.5 per cent would see credit consumers around the country facing higher repayment costs as they attempt to clear debt.