Inflation is rising. Unemployment is at record lows. The Bank of England’s policymakers signalled rate rises are ahead. So why does nobody believe them?
Financial markets believe there is less than a one-in-50 change of a rate rise at next month’s meeting of the Monetary Policy Committee.
Last autumn, when people believed Brexit would happen in March, the odds of a June rate rise stood at more than 50pc.
Mark Carney, the Bank’s Governor, has told markets to anticipate rises.
“Domestic inflationary pressures are continuing to build even though we’re going through this period of uncertainty in the run-up to some resolution around Brexit, but then that resolution is some form of arrangement with…
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