Happy birthday to ultra-low interest rates

This week marks the tenth anniversary of the beginning of extreme monetary policy in the UK. On 5 July 2007 the Bank of England, convinced that inflation was about to take off, raised interest rates to 5.75%. But inflation didn’t take off. A financial crisis did.   

The next moves in rates were down and down again – to 0.5% in 2009 and then, as part of a misjudged Brexit panic,  to 0.25% by the end of last year. The last decade has seen the odd vote by a [...]