The GuardianThe Guardian

Rising inflation spooks Bank of England rate-setters into taking action

By Larry Elliott

16 Dec 2021 · 2 min read

The Bank of England is making a habit of pulling surprises. In November, financial markets were taken aback when Threadneedle Street kept interest rates on hold at 0.1%. This time they were caught on the hop by the decision to raise them to 0.25%.

It’s not hard to see why traders in the City have been left scratching their heads given that the explanation for doing nothing in November – uncertainty about the real state of the economy – seems to apply just as much to today’s circumstances.

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