Today's ¼% interest rate cut to 4.75 % was already priced in the money markets and arrived as expected by many forecasters and economists, sanctioned by the Monetary Policy Committee members, with only one voice looking for no movement.

At the moment after a hiccup here and there, inflation is just below the Bank of England's target 2.00% level and the next and last MPC meeting on December 19^th, could produce one more cut before the holidays.

However, that near done deal was before the Chancellor revealed the extent of the tax grab in the Autumn budget, which is now expected to drive inflation higher. But, for this year I think they might not go down the Scrooge route so close to Xmas, as there will be no immediate negative change to the inflation rate, budget related and I see another ¼% coming. We then enter a wait and see period for inflation and interest rates could mark time at 4.5 % for some time while we struggle with Labour's "growth" package.