The Bank of England’s Monetary Policy Committee (MPC) released their minutes from the May 7 and May 8 monthly meeting that revealed an insight as to the mood of the policy makers and how much closer they are edging to an interest rate change.  Currently the standard base rate is still at the historically low 0.5% and has remained unchanged since March 2009.  With economic growth gaining momentum and the housing market experiencing quickly rising property prices it is expected that the MPC could soon start signaling a warning that the interest rate is due to rise.

The minutes revealed that the nine members of the MPC voted unanimously in the May meeting to hold the base rate at its current level but there was some signaling of members considering a rate change.

The minutes stated: “The committee would continue to refine its views as the economy evolved, and for some members the monetary policy decision was becoming more balanced.”

One economist, Howard Archer, chief UK economist at consultancy IHS Global Insight, remarked, “The outlook for monetary policy is starting to look a lot more uncertain, with the minutes indicating that opinions within the committee are diverging on about exactly when monetary policy should start to be gradually tightened. There are clear indications in the May minutes that some of the more hawkish MPC members are starting to get twitchy.

“We retain the view that interest rates are most likely to start edging up in the second quarter of 2015, but there is clearly a very real and growing likelihood that the Bank of England will act before then.”