Here comes high interest rates

For some time now I have been predicting, and being ridiculed for so doing, rising inflation. So I was intrigued to read the predictions of Andrew Lilico, chief economist at Policy Exchange, that interest rates may rise to 8% within two years so as to try and choke rising inflation. If you want a bad night's sleep then I recommend reading Andrew Lilico's predictions, they are in today's Telegraph (front page of Business). In fact the scariest of Andrew Lilico's predictions is that if the economy cannot stand such high interest rates then the solution may be inflation peaking at 20%.

Sleep well!