More like this
Bank of England sees more inflation and less growth
Business digest: Bank postpones interest rate rise despite inflation fears
The Bank of England is continuing to hold back on rising interest rates despite predicting a continuation in the trend of rising inflation.
Interest rates are now expected to rise from their current level of 0.5 per cent to 0.75 per cent in November, in order to reach 2 per cent in two years' time.
Its latest quarterly forecast also predicted that inflation would reach 5 per cent this year, and would remain above the 2 per cent target until 2013. The report blamed "the increase in the standard rate of VAT, higher energy and import prices, and some restoration of companies' profit margins".
The Bank also cut the UK's prospects for annual growth two years from now from the 3.1 per cent predicted earlier this year to 2.9 per cent.
Read a full report at the Daily Telegraph. ·
