The Bank of England shocked the financial community by raising the base lending rate to 5.25%. This is the third quarter point rise in 5 months.
It appears that the Bank's Monetary Policy Committee have been spooked by the recent rise in inflation. In my opinion, it is this - the inflation rate - rather than the resultant base rate rise which is the real problem.
Sloppy government finances, public sector productivity and the long term problem of the public sector pensions debt are the real problems.
