Further rate rise likely

There may be a further rise in UK interest rates to keep in inflation on
target at 2%.
In its quarterly inflation report, the Bank said inflation could rise as high as
2.7% without a rate rise.

But it said it expected soaring energy prices, as well as rising university
tuition fees would push inflation above its 2% target.

The Bank aslso said the pick-up in inflation was ‘somewhat more marked’ than
in its May report.

Last week the Bank raised rates to 4.75% from 4.5%.

Related reading