LONDON, United Kingdom (Reuters):

Pre-emptive moves by the Bank of England are the best way to control inflation, British Treasury Minister Ed Balls said on Monday, in the wake of last week's surprise hike in borrowing costs.

The Bank of England stunned financial markets by raising interest rates a quarter-point to 5.25 per cent on Thursday, citing concerns over inflation. The decision wrong footed the vast majority of economists and raised fears of more rate rises.

"If the Bank of England judge an early move is the right thing to do for the British economy, I think most people in Britain will be reassured that they are taking the early action that is necessary to keep stability," Balls told Bloomberg television.

"Their job is to look ahead to make sure we meet the inflation target and where necessary to act early. That's the best way to keep inflation stable."

Official inflation numbers for December are due on Tuesday and most analysts will be looking to that data to explain last week's rate hike, given that inflation in November was already running well above its 2.0 per cent target.

If annual consumer price inflation rose above three per cent last month, the Bank of England will have to write a letter of explanation to the Government.

Balls said he had noted the surprise in financial markets and said the Treasury had no prior knowledge of Thursday's hike.