The highly expected raise in interest rates to 0.5% was announced by the Bank of England today in an effort to curb inflation, already 3% above the 2% target level. Inflation rates are almost certain to go higher when the true price of energy starts to bite and consumer gas and electricity prices could rise by 50% very soon. Government storm warnings to expect the home finances to take a big hit as far as energy consumption is concerned, are constant.

Further rises are expected in both sets of key economic data, with interest rates taking a pause for breath at the 1% level within the next two months, dependant on inflation not breaching 6 % but with all the fundamentals currently suggesting it will.