Strategist: Inflationary pressures remain, Bank of England should be cautious about cutting interest rates

Odaily News Bart Stone-Carr, strategist at Raymond James Investment Services, said that while the Bank of England may want to view the rise in inflation as a temporary phenomenon, the January data showed that the inflation rate rose to 3.0%, which suggested that it may take some time to cut the base rate again. The key question facing the central bank's monetary policy committee is how long these price pressures will last. The Bank of England voted unanimously in favor of a rate cut two weeks ago, but since then its chief economist Peel has been warning against a hasty rate cut despite weak economic activity. "Today's data proves that the Bank of England is right to be firm in its commitment to gradual easing." (Jinshi)