BoE contemplated 0.5% rate hike

The release of the minutes on 23 May marked the first time this year that there was a unanimous vote on the MPC. The committee's members did, however, not implement the 0.5% hike the minute revealed them to have contemplated, opting instead for a 0.25% rise, taking rates to 5.5%.

"The (Monetary Policy) Committee agreed that, should the economy continue to develop broadly in line with the central expectation, Bank Rate could be raised further as necessary ... Some members argued that, given the uncertainties around both the outlook for inflation and the impact of interest rate changes, it was better to move cautiously," the minutes said.

The pound rose 0.2% to $1.9767 against the dollar and 0.3% to £0.6797 against the euro upon news of the minutes. Analysts argue that a further tightening of monetary policy is almost a certainty.