The Bank of England increased the money supply at the behest of the government, overestimated the supply gap and indulged in whimsical thinking about imported supply shocks. Now they have eroded their credibility and will have to move towards the normalisation of economic expectations.
Why is this a bad thing? It isn't. We may still have to deal with the incessant crises of a fiat currency, but the balance sheet recessions are rendered cyclical, rather than the debt deflation of Europe or the 'extend and pretend' conversion to Nippon of the US Fed. Working through the debt will take a prolonged period of slow growth, but interest rates that reflect the real price of money will begin to align debt, savings and demand.
When we hear about the rebalancing of the economy, we misunderstand what is required. The rebalancing is away from consumption now towards savings later: lower living standards today for jam tomorrow. An upturn in interest rates begins to benefit rather than punish thrift. About time.