Bank of England warns inflation will rise

The Bank of England makes no change to monetary policy, as expected - the interest rate is still at a record low and Quantitative Easing is at the same levels.

But the Bank has warned that inflation will rise in the near term but will fall back later.

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Bank's interest rise warning

The Bank of England, under the new leadership of Mark Carney, has hinted that the interest rate might not rise in the near future. The rate remains at 0.5% - unchanged since March 2009. It also suggested inflation "will further rise in the near term"