Return of the interest rate - papers 17 February

The Daily Telegraph takes the view of yesterday’s inflation report from the Bank of England as being a political sop to Labour ahead of the expected general election. While showing graphs forecasting a steady increase in CPI inflation in the next couple of years, bank governor Mervyn King still took a “doveish” line, suggesting pressures were being kept in check by current rates, the paper writes. ”An interest rate rise before the general election would be politically damaging and could precipitate a fall in house prices,” it adds. The Scotsman takes a more direct approach, writing...