Summary
A SURPRISE fall in inflation has left the Bank of England with a major presentational problem if, as expected, it raises UK base rates next month.
Inflation on the new benchmark harmonised index of consumer prices measure has slipped to a level not much higher than that at which Mervyn King, bank governor, would have to write to Gordon Brown, the chancellor, explaining why it had fallen more than one percentage point below the 2% target.See the full content of this document
Extract
Inflation Figures Give Bank of England a Rates Rise Headache
However, while inflation is low, the red-hot housing market and mounting consumer debt are ringing very loud alarm bells with some members of the bank's nine-strong monetary ...
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