Pound hawkish after Bank of England inflation report

The latest Bank of England Inflation report, as interpreted by leading economists, will mean a further rate increase of a 1/4 of one percent to 6%. We think the increase will come just before Christmas, just in time to warn consumers to think twice about spending too much on Christmas presents and parties. A bit of a "spoil sport" tactic but an important message which will be sent at just about the most appropriate time in the year (as the Bank of England sees it)!
Although the Bank of England is independent it has to follow the strict remit of keeping inflation under control.

The rate hike will also affect mortgages and interest on savings and is likely to make people cautious about house buying and so, in the short term, prices will probably be stable.