Expectations for the economy to recover following the Pandemic remain low, but this won’t stop the Bank of England hiking rates to levels not seen since December 2008.

Inflation is still the focus of the Bank of England, despite growing concerns about the prospect of a collapse in economic activity. The last three MPC meetings have resulted in interest rate hikes and that is expected to continue until rates are double their current level.

It is possible that following the meeting that will be held on 4th August, the Bank will pause to gain a sense of perspective over developments not just in the UK but globally.

Only Deputy-Governor Jon Cunliffe is bucking the trend of interest rate hikes. He voted to leave rates unchanged at the most recent meeting, while every one of his colleagues voted for a hike.

The economic situation in the UK is not as clear as the MPC voting records make it appear. Cunliffe has several supporters who believe that the combination of supply chain concerns and the conflict in Ukraine are driving inflation higher in what he considers to be an unnatural manner.

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