Bank Dampens Hopes of Spring Rate Cut

Summary


HOPES of a spring cut in interest rates were dealt a severe blow today as the Bank of England signalled it is in no hurry to move borrowing costs in either direction, writes Jane Padgham.

In its latest quarterly Inflation Report, the Bank's monetary policy committee predicted inflation will stick close to its 2% target throughout the next two years, suggesting there is no need to tweak rates, which have been pegged at 4.5% since last August.

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Bank Dampens Hopes of Spring Rate Cut

It added that although spiralling gas prices could boost inflation, t...

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