When should UK interest rates be raised?

MAY 2011 Russell Silberston, head of global interest rates and PM, Investec fixed income team     The Bank of England's Monetary Policy Committee is mandated to deliver price stability. This is defined by government as an annual growth rate in the Consumer Price Index  of 2%. The committee's job is to set bank rate in order to meet this target. They are pragmatic enough, however, to realise that inflation can deviate widely  and so aim to bring it ‘back to target within a reasonable time period without creating undue instability in the economy.' The bank has consistently bel...