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		</div><p><a href="http://londonglossy.com/wp-content/uploads/2011/02/more-mpc-members-want-rates-rise.jpg"><img class="alignnone size-full" title="The Bank of England edged closer to lifting interest rates in February" src="http://londonglossy.com/wp-content/uploads/2011/02/min-more-mpc-members-want-rates-rise.jpg" alt="The Bank of England edged closer to lifting interest rates in February"/></a></p>
<p>The number of Bank of England policymakers backing an interest rate hike increased earlier this month as the threat of inflation heightened, minutes have revealed.</p>
<p>Spencer Dale, chief economist at the Bank, joined fellow monetary policy committee (MPC) members Andrew Sentance and Martin Weale in voting to lift rates from their historic low of 0.5%, despite a shock decline in the economy in the final three months of 2010.</p>
<p>Furthermore, the details of the meeting revealed some members who voted for no change in policy thought the case for a rate hike had &#8220;grown in strength&#8221;.</p>
<p>However, the majority is prepared to wait for further insight into the strength of economic recovery in the first quarter of this year before tackling soaring inflation, which hit 4% in January and could reach close to 5% according to the Bank&#8217;s forecast.</p>
<p>The increasing prospect of a rate hike meant the pound surged, hitting an annual high of 1.627 against the US dollar, according to analysts at currency exchange brokers Moneycorp.</p>
<p>Meanwhile, concerns mounted over the impact the unfolding political crisis in Libya would have on soaring oil prices and subsequently the overall rate of inflation.</p>
<p>The minutes of February&#8217;s meeting showed that Mr Sentance, who has voted in favour of a hike since the summer, now wants to see rates at 1%, higher than his previous vote for an increase to 0.75%. Mr Weale, who voted for a hike for the first time in January&#8217;s meeting, and Mr Dale want rates to increase to 0.75%.</p>
<p>The minutes said the three hawks found the inflation threat, driven by rising global commodity prices, outweighed risks associated with the uncertainty surrounding the strength of the recovery.</p>
<p>However, the majority who passed the &#8216;no change&#8217; outcome decided there was &#8220;merit&#8221; in waiting to see how well the economy performed at the start of the year, to help assess whether the 0.5% decline in GDP output in the fourth quarter was a one-off.</p>
<p>Expert reaction to the minutes was mixed, with some now expecting a rate hike in May and others playing down an imminent rise.</p>
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