Bank of England edges closer to increasing UK interest rates

Three of eight-member monetary policy committee vote for increase after figures show further rise in inflation

The Bank of England has edged closer to raising interest rates as a deeper split emerged among its committee of policymakers, with three out of eight voting for an immediate rise to keep inflation in check.

The 5-3 split to keep interest rates at their record low of 0.25% surprised financial markets and the pound rose against the dollar on the news. Most City economists had expected a larger majority of the committee to opt to keep borrowing costs low to ease the pressure on households from a drop in living standards in the wake of last summer's Brexit vote. It was the committee's widest split since May 2011.

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Related: Bank of England leaves interest rates on hold in shock 5-3 split - business live