Bank of England did consider interest rate rise

This morning's Bank of England minutes showed that the MPC did consider an interest rate rise in January - and the Pound has recovered slightly this morning as a result.

For the first time since rates were slashed to 0.5%, 2 of the 9 members voted for a 0.25% hike in rates. Higher interest rates would be likely to increase the value of sterling, and therefore improve exchange rates for sending money abroad.

However, the decision was made before yesterday's disastrous GDP figures were announced, and Mervyn King's speech last night suggested that rate rises may be off the agenda until the economy returns to stable growth.

For further review of the Bank's minutes, click here.