Interest rates kept cool - papers 18 May

The Daily Telegraph says Bank governor Mervyn King yesterday outlined arguments for making the next move on rates a cut, after he cited previous inflationary shocks one way or the other being the result of “inaction”. The Scotsman says figures published yesterday show inflation remains at 1.9%, just below the Banks’ target of 2%, according to the consumer price index method of calculating price rises. The Bank says in its quarterly inflation report that it expects the rate to move above this long-term target in coming months. The Scotsman points out that while 1.9% may sound low, it i...