Static interest rates could bring inflation - papers 7th May

The Bank of England is this week expected to leave interest rates pegged for a sixth consecutive month at their 38-year low of 4% despite City warnings that this would risk a damaging inflationary boom says the Times. America's Federal Reserve is also expected to leave US rates unchanged but signal that US borrowing costs will rise later in the year. A growing number of City economists are giving warning that the Bank of England's Monetary Policy Committee (MPC) may be risking its first serious policy error since it was handed control of rates in 1997. Nicola Horlick, the high...