If we accept the Bank of England's logic (as we are told we've reached the likely peak of #interestrates rises) that a squeeze was needed due to inflationary tendencies in the economy, the Q. is what does such pressure appear at such anaemic rates of growth?

Two answers, either:

the diagnosis is wrong - inflation is not being caused by wage demands, or..

The UK's #productivity problem is now so great that there is no spare capacity for non-inflationary growth...

(or both, of course!) 

 @43d7c4ea 

"Inflation is being caused by wage demands."

As opposed to "sky rocketing costs of living due to inflation causes demands for higher wages".