Rise to 5.25% comes as no surprise but BoE’s language will frighten many
If it isn’t hurting it isn’t working. That was the message from the then chancellor John Major in 1989 during a previous period when interest rates were being used to combat high inflation. And it was the message rammed home by the Bank of England on Thursday.
Any hard-pressed households or struggling business looking for comfort from Threadneedle Street would have been disappointed by news that the pain will continue and is likely to intensify. Interest rates may not yet have peaked.