"The Bank of England’s rate setting Monetary Policy committee will vote later this morning on whether to hike interest rates as inflation in the UK hits a ten year high of 5.1%.

Producer prices, the cost of goods at the factory gate, also hit a high in November, reaching 14.3%, up from 13.7%. This data provides a clue to the future path of consumer price inflation.

A month ago, the outcome of today’s meeting would have been an easy decision.

The Bank’s Governor following the previous meeting had commented that the MPC had decided to leave rates unchanged until they saw the effect of the withdrawal of the Government’s furlough support scheme, until considering a rate increase.

Given the encouraging employment report that was published earlier in the week, it would seem that condition had been met, but the rapid increase in the number of cases of the Omicron Variant has again placed a rate hike in doubt.

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