Bank’s rate rise is a couple of sparklers compared with Fed’s fireworks | Nils Pratley

The next time the Bank of England debates interest rates, we're likely to see a half-point increase

Five interest rate rises in a row from the Bank of England would once have been regarded as strong and determined action to tame inflation. The problem for Threadneedle Street is that the US Federal Reserve rather redefined the definition of decisive measures on Wednesday when it hiked by 0.75 percentage points in one go.

Versus that full-on display of fireworks, the Bank's quarter-point move to 1.25% felt like a case of turning up with a couple of sparklers. It was a bare-minimum move given that official forecasts now see inflation at 11% in October when consumers' energy bills go up again. The inflation forecasts get bigger every time the Bank opens its mouth these days. As recently as February - just before Russia's invasion of Ukraine - the peak was projected to be 7.25%.