Inflation spike forecast dashes rate-cut hopes

The Bank of England today dashed any remaining hopes of a cut in interest rates this summer as it predicted that inflation will spike above its target in the short term on the back of higher energy and import prices.

According to the Bank’s Inflation Report, the rate-setting Monetary Policy Committee expects consumer price inflation to spike above its 2 per cent target in the coming months from its current 1.8 per cent, before easing back over the remainder of the two-year forecast horizon.
Times Online