Hawkish noises from the Bank of England were heard by the markets – but for how long?

Two MPC members made it clear more rate rises are coming and the pound reacted accordingly. But the committee is going to have to turn talk into action if it wants to retain its credibility, writes James Moore

The Bank hiked rates by 0.25 per cent last week but others went further (PA Wire)

Are we seeing signs of regret from the Bank of England over its most recent decision to avoid the aggressive rate rises imposed by other central banks?

Catherine Mann gave warning on Monday that its rate-setting Monetary Policy Committee (MPC) was in danger of falling behind its peers, with potentially nasty consequences.

Its more doveish approach, she warned, risks stoking more short-term inflation in Britain by sparking a flight from sterling to places offering higher rates. The US in particular. The Federal Reserve moved its rates by 75 basis points while the MPC was inching Britain’s up by just 25. US rates now stand at 1.75 per cent compared to the UK’s 1.25 per cent, a 50bp gap.