Wednesday, January 23, 2008

Bank of England waking up to inflation danger

From the Press Association.....

Inflation fear keeps rates on hold

Inflation fears saw the Bank of England policymakers make a near-unanimous vote to hold interest rates at 5.5% this month, it has been revealed. Minutes of the Bank's last rates meeting show the outlook for inflation "had worsened markedly" amid soaring oil and food costs and with energy price hikes on the horizon.

Eight of the nine members on the Monetary Policy Committee (MPC) voted against a back-to-back cut in rates earlier this month following the quarter-point reduction in December.

The MPC said it feared rate decreases in two successive months might suggest the Bank was "focused more on stabilising demand than meeting the inflation target".