Sure I saw that the BoE were talking about raising UK interest rates to combat inflations. Can't find the story on the major news channels though. Did I imagine it?

There's no direct talk as yet - but the Bank of England has signalled that a rate rise may be more likely than a fall in rates while inflationary pressures continue to build up:
http://news.bbc.co.uk/1/hi/business/4985300.stm

Though the interest rate was not increased this month. In line with what Brian said it is generally believed that the rate is likely to go up before the end of the year

Platinax seems to think the trend is likely up:
http://www.platinax.co.uk/news/07-06...singly-likely/

Probably more likely for November than August, as the Bank of England seems to prefer the slow response.

I don't think the Bank of England will be in any hurry to raise interest rates. At their May meeting only 1 voted for a raise in interest rates, and he's since died. No one at the BoE seems in any rush to make a decision until they've seen clear trends to react to instead of a faster proactive response.