Bank of England’s interest rate decision is finely balanced | Larry Elliott

A post-election bounce fuelled by the housing market means rate setters will seriously consider a rise

Evidence of a post-election bounce in the economy continues to mount. Business surveys have detected a recovery in both confidence and activity. Companies are starting to unfreeze investment plans. And, according to the Nationwide, house prices are starting to pick up.

To be sure, boom conditions are still a long way off. Annual house price inflation may be at its highest level in 14 months, but still stands at a modest 1.9%.