The prospect of a UK interest rate of 4.5% was discussed by the Bank of England's rate-setting body earlier this month, minutes have shown.

They reveal the Monetary Policy Committee (MPC) debated lifting rates to 4.5% from 4% at its May meeting, before settling on a rise to 4.25%.

All nine members of the MPC voted in favour of the quarter-point rate hike.

The rate rise was the third the Bank has made in the past seven months as it seeks to head off any inflation threat.

The minutes of the MPC's May meeting showed the committee thought a half percentage point rise to 4.5% could be "warranted" given the Bank's recent inflation projections.

Last week's quarterly inflation report from the Bank forecast that consumer price inflation would rise above the 2% target rate in the next two years.