Only one member of the Bank of England's Monetary Policy Committee (MPC) opposed this month's decision to leave interest rates unchanged at 4.75 per cent, preferring a quarter point hike.
Minutes of the June 7-8th meeting published today showed David Walton voted for a hike for the second month running because of concern over rising inflationary pressures.
James Knightley, economist at ING Financial Markets
Interest futures rallied and the pound fell against the dollar as the minutes indicated the majority of the committee were in no hurry to raise interest rates from 4.5 per cent yet.
Overall, most MPC members thought recent economic developments were broadly in line with forecasts made in the Bank's May inflation report.
"The minutes are relatively balanced and suggest that there is unlikely to be a near term rate change," said James Knightley, economist at ING Financial Markets.
Analysts had expected the 7-1 vote as Stephen Nickell who had backed a cut last month has left the MPC to be replaced by David Blanchflower who voted with the consensus at his first meeting.
By far the biggest news at the MPC was the recent turmoil in financial markets worldwide. But the effect of this on the economy was far from clear.
Policymakers argued a sustained fall in stock prices and rise in the pound could temper inflationary pressures. But there was also the possibility that firms and consumers had anticipated this, in which case any effect would be modest.
The jury was also out on whether the recent market volatility was the start of a bigger correction.
"Most market commentators have suggested it was likely to be a temporary adjustment. There was a risk, however, of a more prolonged and pronounced correction of financial asset prices that might have a significant impact on growth and inflation," the MPC said.