Renewed warnings from the Bank of England over attempts by companies to push up prices and other risks of inflation in the medium term, yesterday reinforced the City's belief interest rates will rise again before summer, says the Times .
Hawkish comments to MPs from Mervyn King, the Bank’s governor, and other members of its Monetary Policy Committee (MPC), left economists predicting base rates are set to rise again soon, probably by May. King hardened expectations of a new increase in borrowing costs when he told the Commons Treasury Committee there was “no clear reason” for the MPC to change the assessment it set out in last month’s quarterly Inflation Report. The analysis showed consumer price inflation would fall back from present high levels to the Bank’s 2% target over a two-year period, but only if the MPC raise...
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