Another interest rate looms, but Britain doesn’t need this one either

Vacancies are falling, pressure on pay seems to be reducing, tax rises are looming. This economy is unlikely to overheat

Next month brings the likelihood of a 0.25% interest rate rise from the Bank of England, and possibly two more over the rest of the year, as Threadneedle Street seeks to dampen Britain's overheating economy.

At least that would be the reason if the economy were overheating and in need of higher interest rates. In fact, the central bank is simply revealing itself to be weaker than it was in 2011, when inflation jumped to 5% and investors, fearful of runaway prices encouraging workers to demand sky-high wages, demanded action. Interest rates then remained at historic lows.