There are not many predictions that are safe to make in the financial markets. M&S’s results will always be disappointing is perhaps one. Sir Philip Green will never apologise for anything is another. And there is one more that can now be added to the list. The Bank of England won’t raise interest rates when it meets this week.
But it should. Why? Because the ‘emergency’ post-Brexit cut is already looking like an over-reaction. In truth, the Bank’s Governor Mark Carney is already looking dangerously over-committed to Project Remain. The best thing the Bank could do now would be to admit that it had a made a mistake – and put rates back to where they were before 23 June.
Even the most wildly optimistic Brexiteer, and there were a lot who were far too blasé about the economic implications of their cause, could not have hoped for such a run of positive economic data in the weeks after the vote.
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