BoE can’t get no satisfaction

Judging by the heavy criticism of the Bank of England this week, it seems as though it is dammed if it raises interest rates rapidly and damned if it raises them slowly. While we think some of the criticism is unhelpful and harsh, we do think the Bank should have talked tough right from the start of the hiking cycle rather than being consistently dovish. If it had, then perhaps a recession wouldn’t be needed to break the back of inflation. But that’s the situation we find ourselves in now.