A rapid interest rate rise seems inevitable – and households are expected to pick up the tab

Raising borrowing costs too far risks laying waste to whatever growth there is in the economy

A head of steam is building up behind the Bank of England raising interest rates again. With the latest forecasts by the central bank showing inflation rising to 5% next spring, another increase in the cost of borrowing seems inevitable, and may come as soon as next month.

A growing number of analysts predict the Bank's policymakers will don Scrooge masks when they meet on 17 December to deliver a message of austerity and sacrifice.