UK rates 'to remain on hold until 2014'

David Miles, the external member of the Monetary Policy Committee (MPC), said current views in the market are for rates to stay on hold until late 2014 given inflation expectations. Miles, delivering a speech to business leaders in Manchester, said: "That pattern of market rates implied that the first increase in Bank Rate might not come until the second half of 2014." Miles was discussing the latest fan chart predictions for CPI, based on market interest rate expectations and quantitative easing (QE). The assumptions are subject to change, and would clearly be affected if the Bank...