Simon Ward – MPC preview: Is the consensus right to rule out a rise?

4th March 2011

"The inflation report clearly signals the need for a rise, with the mean forecast for inflation two years' out based on unchanged policies the furthest above the target since 1998.

"The economy has rebounded in early 2011, wage settlements have firmed and broad money is growing faster.

"With Eurozone official rates – 50 basis points higher than in the UK – set to rise, continued procrastination risks renewed sterling weakness and further upward pressure on import prices.

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