Inflation picture moderate, but still rising, BoE says

The recently introduced 4% base rate should put inflation on a path to meet the CPI target by late this year, but both upside and downside risks are still great, the BoE warns. GDP growth in the UK continues to recover, with third quarter 2003 growth pegged at 0.9% and signs that the recovery is becoming more broadly based. Prices in the housing market continue at an unsustainable rate, however, this should moderate later in the year as people realise their disposable incomes are growing less fast. This realisation could hit household spending in general. Private sector investment ...