"The Bank of England, now fully focussed on fighting inflation, may have to risk taking the economy close to a recession if it is to bring price rises under control.

The next MPC meeting is being held the week after next and although it is uncertain if a third consecutive hike will take place, the mood of MPC members has turned decidedly hawkish.

MPC Member Silvana Tenreyro spoke yesterday of her expectation that the latest increase in oil prices will increase inflation and dampen economic activity.

Although there is little evidence currently of a wage/inflation spiral developing, the Bank will need to take the possibility of this emerging in the coming months if it is to remain ahead of the curve.

Tenreyro believes that there was some evidence that bottlenecks in supply chains were beginning to ease before the invasion of Ukraine began.

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