Rate hikes are not forgone conclusion

The hawkish tone of the Bank of England's most recent set of Monetary Policy Committee minutes has prompted some analysts to bring forward their expectations of an interest rate rise in the UK. The case for higher interest rates is based on the emergence of a consumer debt bubble, which has built up as the cost of borrowing has fallen. This is also a feature of the US, where the cost of borrowing is even lower. Yet with economic recovery barely underway and a significant proportion of all-new growth stemming from consumer spending, central banks must be aware any hike in interest rates...