The Bank must act now
Tuesday, February 15, 2011 at 02:46PM
Simon Ward

The UK's high inflation rate is not simply the result of "one-off" factors but reflects an overly-loose monetary policy stance that has resulted in rapid growth in nominal spending. An early rise in interest rates is necessary to prevent the overshoot being built into inflationary expectations, which would make an eventual return to target more painful to achieve.

This article is continued on the Financial Times website.

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