Economists to MPC: Hold rates until November

The Ernst & Young ITEM Club says the MPC should avoid raising interest rates ahead of reliable evidence the corporate recovery was fully under way, despite high inflation. Inflation fell by 0.4% to 4% in March as the cost of food and drink lowered, but it is still double the Bank of England's target. It was the first fall in the consumer price index (CPI) for eight months and marked a drop from the 28-month high of 4.4% in February. The ITEM Club expects inflation to ease naturally next year, once the VAT increase and other temporary factors passed out of the index. It also says...