Inflation is taking off. Producer price inflation in May hit 9 percent. Furthermore, with oil hitting $139 a barrel, there are no indications of an improvement in the near future.
Estate agents and buy to let speculators might be hoping for a rate cut, but a rate rise is now lookiing more likely. Interest rates across the OECD are too low, and central bankers are waking up to that sorry reality. Both the ECB and the Fed have begun to hint that the next rate move will be up. If the two big girls move, the Bank of England will have to follow.