Interest rate rise is further away than MPC vote suggests

Bank of England will follow Fed with quarter-point rise only when evidence of upward inflationary spiral emerges

We have been here many times before. In the eight years since the Bank of England cut interest rates to a then record low of 0.5%, there has been regular speculation in the City that borrowing costs are heading back up.

The latest flurry of excitement was caused when Kristin Forbes broke ranks with her monetary policy committee colleagues and said something should be done about rising inflation.