Inflation is poised to top 4%: is the Bank of England asleep at the wheel?

Analysis: Threadneedle Street is adopting a wait and see policy and keeping interest rates unchanged

Higher energy prices will send the annual inflation rate above 4% by the end of the year and keep it there well into 2022. On the face of things, the Bank of England is asleep at the wheel and should be taking steps to ease growing price pressures.

It is not quite so simple as that. The minutes of the latest meeting of Threadneedle Street's monetary policy committee show the Bank opposed immediate action, with only two of the nine members voting to halt the money creation programme known as quantitative easing (QE). All nine backed keeping official interest rates unchanged at 0.1%.