Inflation Spike: Bank of England warns prices will rise

The Bank of England has warned that inflation was set to rise this year, hitting 4 per cent in the Autumn, much higher than it was forecasting just three months ago.

Despite the spike, the Bank remains determined to keep interest rates at just 0.1 per cent, though it’s now talking of a “modest tightening” over the next two years, in plain English that’s interest rates going up a bit, perhaps to 0.5 per cent.