Wednesday, February 16, 2011
Bank debate still raging on rates
Posted by David Smith at 12:00 PM
Category: Thoughts and responses

Gordon Brown could never quite bring himself to use the word "cuts" and Mervyn King appears to have a similar problem with the words "higher rates". While the Bank of England's new inflation forecast implies at least a couple of hikes this year, with Bank rate rising to 3% over the next 2-3 years, the Governor insisted he was not endorsing this view on rates.

Otherwise the inflation report was fairly unremarkable. Higher inflation and weaker growth this year but things get much better in 2012 and beyond. The report is here.

Earlier, labour market statistics pointed to steady Labour Force Survey unemployment, at 2.49m, though weak employment growth and a modest January rise in the claimant count. Given the winter dangers, these figures were not too bad. Details here.