The Bank of England is risking higher interest rates for longer after a hesitant response to rising inflation.
Last week, the monetary policy committee raised the cost of borrowing from 3.75% to 4% and hinted at another increase. The National Institute of Economic and Social Research warned that a timid rise was likely to keep inflation above the central bank 2% target until at least 2030. The thinktank added that inflation could become more persistent unless the Bank acted more aggressively. Its director said one further quarter-point rise was unlikely to be enough.