MPC warns inflation may not fall as fast as expected

The Bank of England's Monetary Policy Committee voted unanimously in favour of keeping bank rate at a record low of 0.5% and maintaining QE at current levels, while warning inflation is unlikely to fall as fast as expected.

Minutes from the committee's meeting earlier this month revealed governor Mervyn King and his colleagues are concerned inflation may remain higher than expected next year. The minutes said: "It was noted that inflation was currently materially above the target and it remained a possibility that it would be slower to fall during 2012 than the pace implied by the committee's central projections." The latest inflation figures show CPI is running at 5%, above the 2% target, and King had previously said he expected it to potentially fall to 3% by the end of Q1 2012. The minutes also rev...