On Thursday the Monetary Policy Committee (MPC) of the Bank of England will announce whether or not it will increase Bank Rate for the fifteenth time in a row. The MPC is widely expected to follow the example of the European Central Bank and raise interest rates once more and the consensus among the markets and economists is that this will be a final rise taking them to 5.5% and where they will remain for several months at least.
Such a move would be wrong. The MPC should not increase interest rates on Thursday and should consider lowering them more quickly.
