Bank of England Governor Mervyn King and three other Monetary Policy Committee members opposed this month's decision to hold interest rates at 5.5 per cent, preferring an immediate quarter percentage point increase.
Minutes of the June 6-7th MPC meeting published this morning showed Mr King was joined by Deputy Governor John Gieve, Tim Besley and Andrew Sentance in calling for a second consecutive rate rise in June.
But they were outvoted by the remaining five members, including Deputy Governor Rachel Lomax and chief economist Charles Bean, marking the second time in the MPC's history that the governor has been on the losing side of a rate decision.
Analysts had predicted a 7-2 vote for steady rates. The minutes immediately sent sterling higher and rate futures lower as markets priced in a higher chance of borrowing costs rising to 5.75 per cent as soon as next month.
"This certainly changes the landscape and it would suggest that the next rate meeting could well be the one where we actually see the move (higher in rates) take place," said Simon Derrick, head of currency research at Bank of New York.
MPC members arguing for no change in rates said a decision to raise them in June would have surprised the market and "probably pushed the yield curve higher, which would not be warranted".
They also pointed to the need for "measured" rate rises given the high level of personal debt - interest rates have already risen four times in the last year - and said there were early signs of the housing market and consumer spending slowing.
But the hawks argued that not much had changed since the May Inflation Report which had signalled one more rate rise.
"For these members there was no compelling reason to wait. Moreover, by raising now, the peak in interest rates could eventually be lower," the minutes said.
In contrast to the doves, the hawks said a rate rise would not have been much of a surprise.
They also pointed to house price inflation being higher in almost every part of the country and said the easing in spending data was at best tentative.