BoE makes progress but will need some help

Tough measures: Pedestrians pass the BoE in the City of London. The central bank raised its benchmark lending rate to the highest level since 2008, saying further increases may be needed if inflationary pressures persist. — Bloomberg

THE Bank of England (BoE) had no practical alternative but to raise interest rates on Thursday by 25 basis points to 4.5%. Indeed, that was the easy part of its policy deliberations.

The more uncertain and complicated parts had to do with its forecasts and forward policy guidance, and those made it clear its policy efforts will need to be accompanied by supportive government measures.