Sunak is on track to hit his inflation target – but that’s where the good news ends

Tories were quick to pounce on the fact that Sunak’s pledge to “halve inflation” to 5.4 per cent by the end of year now looks likely, writes Chris Blackhurst, but as ever they are talking up only the good bits of the interest rate hike

There’s good news and bad (PA Wire)

Today, they cast their votes. 6-3. Enough for a majority decision, but hardly convincing.

A third of the Bank of England’s Monetary Policy Committee was opposed to putting interest rates up by 0.25 per cent to 5.25 per cent. One believed they should remain at 5 per cent. Two said raise them higher still, to 5.5 per cent.

The fact they are so split gives some indication as to the truth of the situation, which is that they don’t really know. They think inflation is falling, the signs are encouraging – but there again, prices in the UK are continuing to rise faster than in other developed economies like the US, Japan and EU. There, they’re hopeful interest rates are peaking; in the UK we’re not there yet, and we cannot be anything like so optimistic.