The Bank of England has hinted that UK rates may have to rise further in coming months in order to keep 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 while the Bank said it had raised its expectations for economic growth, it warned that high energy bills still posed a risk.
The news comes a week after the Bank raised rates to 4.75% from 4.5%.
I'm telling you, 6% by Spring 2007. Remember, you heard it here first.
In its quarterly inflation report, the Bank said inflation could rise as high as 2.7% without a rate rise.
But while the Bank said it had raised its expectations for economic growth, it warned that high energy bills still posed a risk.
The news comes a week after the Bank raised rates to 4.75% from 4.5%.
I'm telling you, 6% by Spring 2007. Remember, you heard it here first.
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