An interest rate rise in Omicron times? It could just happen

Despite new restrictions, some experts say rising inflation and vacancies are good reason for the Bank of England to take a lead this week

There is a contrarian view of Britain's economic outlook. Those who subscribe to it argue that despite fresh government restrictions to combat the Omicron variant, the recovery is robust and the Bank of England will have to raise interest rates when it meets this week.

It is a minority view in the City, but it could find favour inside Threadneedle Street when members of the nine-strong monetary policy committee (MPC) gather, and bring a surprise increase in the base rate from 0.1% to 0.25%.