LONDON, Jan 24: Bank of England policymakers voted narrowly for a surprise rate increase to 5.25 per cent in January, minutes of their latest meeting showed on Wednesday.

The central bank's nine-member Monetary Policy Committee had raised British borrowing costs by a quarter-point on January 11.

According to the minutes, the MPC agreed that the balance of risks to the outlook for inflation had shifted upwards.

The majority of MPC members felt there was “sufficient evidence to justify an increase in Bank Rate and no compelling reason to delay” -- despite the fact that the decision was unexpected by financial markets.

The BoE has now raised rates three times in the past six months as it seeks to combat rising annual inflation -- which had jumped to a decade-high of 3.0 per cent in December.

The BoE is tasked by Prime Minister Tony Blair's Labour government with keeping 12-month inflation close to a 2.0 per cent target.—AFP