Interest Rates: “Don’t run ahead of yourselves”
16/02/2011
The Bank of England lowers its growth forecast for the British economy and signals a rise in interest rates to tame inflation – but Governor Mervyn King says no decision has been made on timing.
Average rating.
In its latest quarterly report published today, the Bank said output was likely to be weaker than expected in 2011, but a double dip recession was not expected.
Inflation is likely to continue rising this year to around 5 per cent, before falling close to the Government’s 2 per cent target in 2012 – but only if interest rates rise in the second quarter of 2011.