In May the Bank of England sensibly defied expectations and chose not to increase interest rates.

The consensus that rates will rise this week has strengthened amongst commentators. But the actual case for a rate rise has got weaker.

The Bank’s mandate is to target inflation. Their case for an interest rate rise is that the economy is near capacity – the point at which further expansion will lead to inflation.

But when we look at wages and prices, the data says the opposite.

That's why we're clear that a rate rise would be another nail in the coffin for any hope of a sustained increase in wage growth.

Because if wages are to rise the economy needs support, not restraint – and the government’s refusal to do what’s necessary shouldn’t mean the Bank simply gives up too.