MPC warns inflation may not fall as fast as expected

Minutes from the committee's meeting earlier this month revealed governor Mervyn King and his colleagues are concerned inflation may remain higher than expected next year. In the minutes it said: "It was noted that inflation was currently materially above the target and it remained a possibility that it would be slower to fall during 2012 than the pace implied by the committee's central projections." Although the MPC said an expansion of the asset purchasing programme - now at £275bn - could become warranted next year, the committee said as inflation was still above target and likely ...