Interest rates look almost certain to go up in July, analysts said, after it emerged that Mervyn King, the governor of the Bank of England, had voted for a quarter-point rise this month but was narrowly defeated. The Times. The Independent. Daily Telegraph. The Guardian
King wanted to raise the cost of borrowing to 5.75% earlier this month but was outvoted in June by the Bank’s Monetary Policy Committee’s for only the second time of his tenure, according to minutes released yesterday.
King was joined by Sir John Gieve, deputy governor responsible for financial stability, and regular hawks Tim Besley and Andrew Sentance in plumping for a quarter-point rise.