Sunday, March 16, 2008
CPI holds at 2.3% confounding everyone – BoE lower rates by 100bps
In Britain, nerves could be set on edge if the February inflation figures – also due out on Tuesday – show a decisive rise above 2.5%, from 2.2% in January. While Mervyn King, the Bank of England governor, has primed the markets to expect a significant rise in inflation in the coming months, any sign that it was moving higher at an unacceptable pace would be seen as limiting the Bank’s room for manoeuvre on interest rates. …………….anyone honestly believe Crash and Darling are going to allow the release of the true rate of inflation?????