A member of the Monetary Policy Committee (MPC) of Bank of England has called to increase the interest rates for the very first time in next two years. A member named Andrew Sentance has called for a rise in interest rates to 0.75% from 0.5% due to the stubborn inflation.  

This was the first call for interest rise in UK by the MPC members since August 2008. The Bank of England has decided not to invest any more money into the economy of UK under its rule of quantitative easing, also called as QE.

The inflation hit 3.7% in April which is a 17 months high, though it fell down to 3.4% in the month of May, it is still well above the target of the bank of 2%.

According to Mr. Sentance, the persistence of the inflation had created doubt on the prediction of the Bank that spare capacity in the weak economy would be good enough to pull the inflation down. On the other hand, the other members are not in for of this decision.