This chart captures the failure of QE and the failure of central bankers with distinguished degrees and careers to understand the meaning of ‘other things being equal‘, low interest rates should lead to higher borrowing.
Low interest rates – below some threshold – reinforce deflationary expectations. Most Central bankers in advanced economies are not listening. Perhaps, they are really after weaker currencies first and not so much inflation. If they want the latter, they would go for monetisation of fiscal deficit (helicopter drop of money).
So, should we be surprised that the Bank of England keeps pushing out rate hikes. The more rates remain too low, the more likely that inflation undershoots and the longer rates remain low. It is a vicious circle.