The Bank of England has finally raised interest rates. More, please

Finally, interest rates are back on their way up. The Bank of England’s rise today – from 0.25 per cent to 0.5 per cent – is the first rise for 10 years and long overdue. Ever since the Brexit vote, there has been much hyperbole about the underperformance of the UK economy when in fact employment has soared to ever-greater highs and economic growth has steadily continued. There is no need for emergency interest rates, and hasn’t been for quite some time. There is pretty much no spare capacity left in the economy, we are at any sensible person’s definition of full employment.

Mark Carney had allowed his Brexit gloom to cloud his judgment on this, issuing more QE when it wasn’t needed. So the Bank of England found a fresh excuse to dole out dangerously underpriced credit – always an easy way out of a quick fix today, but storing up problems tomorrow.