Interest rates: should we be worried?

I reckon by the summer, if not before, we will have seen the first increase in interest rates in ages.

The Bank of England's Monetary Policy Committee, which decides these things, met last week and kept rates at 0.5 per cent for a record 22nd consecuitve month, despite the looming spectre of inflation scaring the beejezus out of some economists.

Some pub operators fear that a rate rise before the economy has got back on its feet will hit those homeowners who've seen their spending power increase over the last near-two years and who, operators argue, have spent some of the extra cash in their establishments.

Others, however, see a rate increase as essential to combat inflation, adding that if the Bank sees fit to raise them it at least indicates the economy is in better shape to deal with the pain that will inevitably follow.

Savers would benefit, although it generally takes a while to filter through, since banks don't rush to put up rates on savings accounts versus the speed with which they increase the cost of borrowing.

If rates are​ to rise, some experts want to see the financial equivalent of feeding a kitten: little and often.

Would higher interest rates make banks more likely to lend to the pub sector? Maybe, but it might be a high price to pay at this stage of the recovery. Literally.

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Still no word on what Punch Taverns chief executive Ian Dyson has in mind for the business. True, he's got up to another two and a half months to announce the findings of his strategic review.

But with each passing week the speculation builds as to what is likely to be on his agenda. Exciting, isn't it?