The British have something that Janet Yellen would really kill for: inflation. But they are also living in something of a Bizarro World when compared to the Fed. While our own central bank is slowly but consistently raising rates in spite of sub-2% inflation—possibly to troll the president—the Bank of England is refusing to in spite of near-3% inflation, possibly—no, make that definitely—because Brexit.
But a central banker can tolerate rising inflation for only so long before he or she loses their shit about it. And the BoE's members are getting dangerously close to that point.
For three MPC members— Kristin Forbes, Ian McCafferty and Michael Saunders —intensifying inflationary pressures justified an immediate increase in the BOE’s benchmark rate to 0.5%, a move that would reverse the quarter-point cut implemented in August….
All eight officials agreed, though, that their tolerance for rising inflation is wearing thin. Officials had previously said they were prepared to tolerate a burst of rapid price-growth to keep the economy on an even keel as the U.K. began exit talks with the European Union.