Following Andrew Bailey’s assertion that inflation is about to begin to fall more rapidly, the market has begun to speculate on how many more interest rate hikes the MPC will deliver before they pause.

The UK has a higher average level of interest rates historically than several of its competitors, so the level at which rates become restrictive is likely to be higher and certainly higher than it is at present despite over a years’ worth of interest rates.

Since rates have been at historic lows in order to combat various crises that have affected not only the UK but the global economy as well, borrowers have got used to a new paradigm that didn’t exist in the last three decades of the last century.

The gradual increase of interest rates over the past fourteen months has allowed borrowers to avoid the level of pain usually associated with tighter monetary policy. Given the circumstances that have surrounded the country politically, socially and financially, rising interest rates have not provided the shock that would usually be expected to the economy.

Brexit has been delivered, but following the jingoistic leave campaign orchestrated by Boris Johnson and Nigel Farage, there is the real probability that a majority of voters feel that it was the wrong decision.

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