When will interest rates rise? It’s 'lose-lose' for the Bank of England

Whether the Bank of England decides to raise interest rates or not, it can't win, says Matthew Lynn.

There are many factors for the governor of the Bank of England, Mark Carney, and the rest of the Monetary Policy Committee to consider before they move interest rates upwards. The durability of the recovery, the frothiness of the housing market, the state of the budget deficit, the rate of inflation, and the condition of the world economy will all play a part in the decision.

But one issue might be more important than any other, and has so far been over-looked by the markets: the need to secure the Bank's reputation for independence and to make sure that it is not in any way seen to be trying to influence the result of the elections.

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Matthew Lynn

Matthew Lynn is a columnist for Bloomberg, and writes weekly commentary syndicated in papers such as the Daily Telegraph, Die Welt, the Sydney Morning Herald, the South China Morning Post and the Miami Herald. He is also an associate editor of Spectator Business, and a regular contributor to The Spectator. Before that, he worked for the business section of the Sunday Times for ten years. 

He has written books on finance and financial topics, including Bust: Greece, The Euro and The Sovereign Debt Crisis and The Long Depression: The Slump of 2008 to 2031. Matthew is also the author of the Death Force series of military thrillers and the founder of Lume Books, an independent publisher.