Robertson: Bank of England in no hurry to raise rates

Looking at last week's inflation report, it seems the Bank of England is reasonably content with the current state of play.

It seems in no great hurry to raise interest rates, although it did say the present low rate cannot prevail indefinitely. Mervyn King said the Bank continues to believe CPI inflation might go as high as 5% this year, before moderating subsequently. In my opinion, this looks a bit high, but as King said, these forecasts were conditioned on oil and commodity prices that have since fallen. Medium-term inflation was also mentioned as being under control at or around 2%. I believe the Bank will not respond to higher CPI inflation by an early rise in rates. If the recovery continues – no rene...