The Bank of England interest base rate decision was another missed opportunity. Policy is already too tight after interest rates have been raised so far and so fast.

It was particularly disappointing that three members of the Monetary Policy Committee actually voted to increase rates with none recommending a cut.

Having been too slow to start increasing rates as inflation pressures built, policymakers now risk keeping rates in place for too long.

Monetary policy judgments require a recognition of the time lags between interest rate changes and their economic impact. These lags are generally considered to be around 12 to 18 months, which means that the impact of rate rises since the fourth quarter of last year are still working through.

Like super tankers, economies take ages to change course. Interest rates must not be based on latest inflation or growth numbers, especially as there are already signs of economic weakness and inflation has fallen........

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