MPC unanimous in raising rates

Inflationary pressures are building up around the world, spurred by global economic recovery and higher commodities prices in both sterling and dollar terms. In the UK, household spending has held up better than expected following November’s 0.25% hike in the base rate, while house price inflation remains unexpectedly strong. Following publication of the Bank’s quarterly inflation report, which took place after the MPC voted on rates, the minutes include reference to the central inflation projection, which shows inflation creeping up over the next couple of years. The rise in sterl...