The release of the minutes of the Bank of England monetary policy committee meeting minutes from their most recent meeting show that the committee approved this month’s UK interest rate cut by a close 5 to 4 vote.

The majority who voted for the rate cut argued that confidence would be damaged if the rate were not cut and that a small action now would eliminate the need for more drastic action later on. The four who voted against the cut, including the Bank’s governor and its executive director, were of the opinion that it was too early to judge that pressures toward inflation had eased.

And, in fact, July’s inflation figures showing that inflation was up to 2.3 percent tended to validate the reasoning of those members of the committee who voted against the rate cut. The vote was the first time the Bank’s governor had been in the minority on a rate decision vote since the monetary policy committee was created in 1997.

The release of the minutes showing the reasoning that led to the rate cut vote sent sterling to its highest level in relation to the euro since July 7. Sterling also gained against the US dollar. The advance of sterling was an indication of the belief that further interest rate cuts will not be forthcoming in the near future.