http://news.bbc.co.uk/1/hi/business/6265765.stm
New inflation figures due to be published are expected to show the cost of living has reached an 11-year high.
A week after householders were hit by another rise in interest rates, some City analysts predict the inflation rate for December will be close to 3%.
The target rate is 2% - but if it goes above 3%, the Bank's governor Mervyn King would have to write a letter of explanation to the government.
This would be for the first time since the Bank gained independence in 1997.
New inflation figures due to be published are expected to show the cost of living has reached an 11-year high.
A week after householders were hit by another rise in interest rates, some City analysts predict the inflation rate for December will be close to 3%.
The target rate is 2% - but if it goes above 3%, the Bank's governor Mervyn King would have to write a letter of explanation to the government.
This would be for the first time since the Bank gained independence in 1997.
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