Inflation Set to Climb Well Over 4%, Bank's No2 Warns ; Economy

Summary

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MERVYN KING'S number two at the Bank of England declared today that inflation will accelerate to "well over" 4%.

Sir John Gieve, who is to leave the Bank after being criticised over the Northern Rock debacle, also declared: "I cannot rule out a recession." The Consumer Prices Index is already well over the bank's 2% target for inflation, currently running at 3.8%. If it stays a percentage point above the 2% goal, the Bank Governor has to write an open letter of explanation to the Chancellor.

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Inflation Set to Climb Well Over 4%, Bank's No2 Warns ; Economy

He has already written one this year, and is expected to h...

See the full content of this document

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