Inflation warning from Bank - papers 12 February

The statements from governor Mervyn King indicate the next rate rise could come as soon as May, the paper says, because of the predicted boom times that lie ahead in the next couple of years. King also hinted that the market’s forecast year-end base rate of 4.75% may be a more conservative estimate than the Banks’ own figures would suggest, the paper adds. The Guardian says the Bank’s statements on inflation are already causing more pain for exporters, as currency traders jumped into sterling overnight when the Federal Reserve indicated rates in the US will remain at record lows. F...