It’s not the job of the Bank of England to be popular. Trust and credibility are more valuable assets for the Bank than attaining public affection. That’s fortuitous for the Old Lady of Threadneedle Street as she makes what will be a contentious decision this week on interest rates. Whatever the Bank’s monetary policy committee decides at its August meeting, it will be criticised. Indeed, this is the very justification for having an independent, non-partisan policymaking committee, one that is shorn of the muddied fleece of popularism.
The task for the nine-person MPC will be to weigh up the latest economic data and to judge the most appropriate path for Britain’s borrowing costs and savings rates. This won’t be easy. For the first time since