King: No Rush to Raise Bank Rate Despite High Inflation

The HeraldFebruary 17, 2011

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Summary


Bank of England Governor Mervyn King yesterday played down the prospect of an imminent interest rate hike despite signalling borrowing costs would need to rise to curb inflation.

Mr King denied policymakers were paving the way for an early rate rise - but the Bank's own inflation forecast indicated at least two increases were on the way in 2011 to bring inflation to target within two years.

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King: No Rush to Raise Bank Rate Despite High Inflation

The report also revealed a downgrade to this year's growth forecast, although the Bank said the UK should avoid a double- dip recession.

After publication of the report, Mr King said while i...

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