Thursday\’s quarter-point rate cut, to 5.25 per cent, left British interest rates more than a full percentage point above the level prevailing in every leading economy apart from Australia.
Come along now, that\’s an irrelevance. We don\’t care what nominal interest rates are, only real. What\’s the number after we adjust for inflation? From memory (and using RPI not CPI) UK rates are now something like 0.5%, maybe 0.75%.