Interest rate rise in midst of cost of living crisis will leave many incredulous

Bank’s decision goes contrary to analysis from Office for Budget Responsibility that predicts lower inflation and little impetus for wage growth

An interest rate rise by the Bank of England to 4% is a big call when households are suffering from a second cost of living crisis in four years.

Many people will be incredulous when they hear of the decision to increase the cost of borrowing by 0.25 percentage points, looking around their neighbourhood for signs of a booming economy.

The official figures show the economy has proved resilient in response to the jump in oil and gas prices after the outbreak of war in Iran, but UK high streets are struggling and the underlying drivers of inflation are absent.