OK - so this post is very counter-intuitive for me, having long argued we need to raise rates on this blog to normalise the economy. But as it happens there are many signs in the economy of the top being reached and an uncertain global economy - a few facts to consider:
All the above point to a notable inflection in the economy. The boom has been going for nearly ten years since the crash, it may yet last another year or two, but housing is toppy. The UK Government is still in debt and still is running a deficit, even as private sector debt grows. The corporate sector debt is the one area where there is room for expansion, but the doom-laden atmosphere around Brexit is really lowering investment by corporates.
In this environment, basically until Brexit is sorted out satisfactorily, it seems weird to raise rates right now when there is no evidential inflation pressure. Of course, Remainiacs at the Bank of England may want to slow the economy as a tool for helping the Government renege on Brexit. Historically, the BOE always get things wrong of course so this interest rates rise may well be a sell signal!