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mpc: 26 There were, however, a number of arguments for increasing the repo rate this month, to which different members attached different weights. First, some downside risks to inflation had diminished. The first rises in rates since February 2000 did not seem to have had a disproportionate effect on household consumption and borrowing so far, so the argument for caution, which had seemed persuasive in November, now appeared less relevant. Also, for some members, the latest US non-farm payrolls data were an indication that the downside risks to US consumption growth had diminished. Second, a rise this month would not be a major surprise in financial markets, so there was less danger of triggering an upward shift in the sterling yield curve or effective exchange rate. Third, a rise in rates now might help to discourage unsustainable rates of house price inflation. That would address an upside risk to consumption in the near term and also reduce the risk of a sharp correction to the housing market and to consumption later. Were such a correction to take place, that might pose difficulties for the Committee in keeping CPI inflation close to the 2% target. One member put particular weight on possible future complications for the Committee arising from the increased vulnerability of the household sector to shocks due to the continuing increase in its debt relative to disposable income to historically high levels. That member also argued that the still-high growth rate of secured and unsecured debt pointed to continuing robust consumption growth in the near term.