Here we go again…the Bank of England has dropped heavy hints on interest rates. It could order an increase next month, according to the latest market pricing.
Many are puzzled with the sudden change in communication given the fragile state of the economy and the uncertainty created by Brexit negotiations.
The Bank, of course, has form for raising expectations then failing to deliver.
Long before the most recent sabre-rattling, it had earned the nickname “unreliable boyfriend”. It received the label during a select committee grilling by Labour MP Pat McFadden in 2014.
The most recent swing in sentiment came after Gertjan Vlieghe, a dovish member of the MPC, suggested we were “approaching the moment when Bank Rate may need to rise”.
Markets had believed a rise from 0.25% to 0.5% was possible by June 2018.