Thinktank Niesr says timid rate rise last week likely to make inflation more persistent feature of UK economy

The Bank of England is risking higher interest rates for longer after a hesitant response to rising inflation, according to leading thinktank.

In a searing critique of the central bank’s tactics, the National Institute of Economic and Social Research (Niesr) said a timid increase in interest rates last week was likely to mean inflation staying above the Bank’s 2% target until at least 2030.