MPC hawk Sentance calls for 0.5% rate rise

Previously the MPC rebel (pictured) had been calling for a 0.25% increase in the Bank of England base rate. But minutes from the Committee's February meeting show he has now doubled that to a full half a percentage point increase. Bank governor Mervyn King has kept interest rates at an historic 0.5% low for 23 straight months. Fellow members Spencer Dale and Martin Weale preferred to increase the Bank Rate by 25 basis points. Of those members not favouring a rise in Bank Rate, some thought the case for an increase had nevertheless grown in strength, according to the minutes. ...