When all nine members of the Bank of England's Monetary Policy Committee voted to keep interest rates steady earlier this month it may well have been the unpreparedness of the markets for a rise that kept the rate unchanged.

"To raise the repo rate at this month's meeting would be a surprise, which might prompt an unwarranted re-evaluation of the committee's strategy by market participants and might as a result generate further upward pressure on sterling," the minutes read.

Minutes of the March 3 and 4 meeting published yesterday show that the committee identified a number of reasons for raising rates and the decision to stay was “finely balanced”.

For keeping the rate unchanged the minutes said, "Overall, the prospect remained one of a steady pickup in CPI inflation toward target."

However, some of the committee thought that an early rate increase was better than waiting. "The pickup in house price inflation and the continued rapid accumulation of debt by households increased their concerns that, without policy action, households' financial position could become unsustainable and so increase the probability of an eventual abrupt adjustment process,” the minutes record, continuing, “On that view, an increase in the repo rate now might reduce such risks. One member judged that an immediate rise might have a greater impact on household behaviour and delay might entail a larger increase in the repo rate at a later date."

In the end the MPC kept policy steady after deciding that although the upside risks to consumption had probably increased, it would not materially change the committee's inflation forecast made in February which had implied a gradual rise in interest rates.

The mood of the meeting suggests an early rate rise is to be expected and analysts are suggesting a further increase in May.