It would come as a shock to most economists if the Bank of England opted to cut interest rates at its policy meeting this week. Financial markets, which were baying for a cut last May, are these days betting that August or possibly September will be the point at which the Bank starts to lower interest rates from their current level of 5.25%. The reason for the delay can be found in the UK’s improving economy, which some on the Bank’s monetary policy committee (MPC) believe could ­trigger the return of inflation later in the year. Higher shop prices would be embarrassing if victory in the fight against inflation had already been declared. Would the central bank have to raise interest rates again if that happened? Inside the Grade I-listed Threadneedle Street edifice that houses the Bank of England’s headquarters, a U-turn is considered unconscionable. And if the economy can grow when interest rates stand at 5.25%, why hurry to bring down the cost of borrowing? In an election year, the government might feel more of a sense of urgency about a reduction. After the historic swing against the Conservatives in the Blackpool South byelection and the loss of many council...