The Bank of England has finally caught up with the curve of rising interest rates. Amid headlines of the biggest monthly rise in 30 years, Bank Rate has been raised to the dizzy heights of 3 per cent. By any standard other than the weird, zero-interest world since the banking crisis, this would have been seen as the bottom of the interest rate cycle. As it is, the calls to protect borrowers from rising mortgage rates started almost immediately, while Andrew Bailey and his Monetary Policy Committee signalled that the market expectation of a peak of 5.25 per cent was too high.

The MPC acknowledged the possibility of that rate, but sketched an alternative where inflation peaked at a curiously-precise 10.9 per cent, before subsiding to 5.6 per cent by the end of next year, and miraculously fitting inside its 2 per cent target range thereafter, even with no further rises in Bank Rate.