Mervyn King, in his speech in Scotland, one of a small number of "major" speeches on the economy he makes each year, warned of turbulent times ahead. King is worried about global inflationary pressures and the vulnerability of asset markets. He was not, however, noticeable hawkish on UK rates. Read his speech here.
Meanwhile, UK inflation figures showed the expected rise in consumer price inflation from 2% to an above-target 2.2%. RPI inflation rose from 2.6% to 3% and RPIX from 2.4% to 2.9%. This was an across-the-board increase in UK inflation. Details here.