"Despite the Bank of England’s new-found determination to bring inflation under control, prices are continuing to rise and will continue to do so for some considerable time to come.

Having hiked rates twice already, it would be normal for the MPC to hold back on a third hike to give the earlier action time to have an effect. However, the pace at which prices have been rising coupled with both the tax increases and increase of the energy cap means that the bank doesn’t have the luxury of time.

The conflict in Ukraine has also added urgency to the situation, as the price of a barrel of oil hovers around $100. Russia’s invasion of Ukraine will be the first global issue that the UK will be reacting to independent of the EU. Since Brexit, the country is now free to establish its own parameters for sanctions, without being guided by Brussels.

London has easily the highest number of Putin allies owning property and businesses, so it is important that the British Government is able to exercise its independence in ensuring they do not slip through the net

While the Russian President clearly took the risk of sanctions into account when planning the invasion, the economy is already feeling their effect. The Rouble has collapsed and there has been a ban on foreign currency transactions being undertaken by individuals. Interest rates were doubled to 20% yesterday in an effort to stave off further speculation.

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