The Bank of England says there is no immediate inflation threat despite oil and house price rises in...
The Bank of England says there is no immediate inflation threat despite oil and house price rises in recent months, opening the way for continued loose monetary policy.
The outlook will ease fears of interest rate rises in the near future as the bank says it does not see inflation rising above the 2.5% target anytime within the next 18 months.
The bank says there are signs that economic recovery is under way in the US, but that the situation in Europe and Japan is harder to guage.
It adds that the fourth quarter of last year marked the low point of the current economic cycle.
The bank suggests UK companies are "hoarding" labour that they do not want to get rid of in anticipation of an economic turnround.
This would make it easier to respond to an increase in demand for above all manufactured goods without increasing the payroll substantially.
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First mentioned in Cridland Report