We’re being softened up for more interest rate rises

The inflation dragon must be slain, says James Moore

Mortgage debt and home repossessions are much lower than during previous financial crises, the Bank of England’s governor said as he emphasised lenders’ ‘obligation’ to support borrowers (PA)

You could bet your mortgage on another interest rate rise at the meeting of the Bank of England’s Monetary Policy Committee next Thursday.

Consider the latest intervention by external member Jonathan Haskel, via a column for The Scotsman. He stuck to the script, allowing only that more rate rises “may be necessary”. But take note of his conclusion, which could easily be regarded as a softening-up exercise: “As difficult as our current circumstances are, embedded inflation would be worse.”

Haskel’s message is that “we know this is hard medicine but the alternative is much worse”.