Buxton: No rate change despite 'stubbornly high' inflation

Schroders' Richard Buxton believes interest rates will remain on hold in 2011, despite a record jump in inflation.

The manager of the £2.3bn UK Alpha Plus fund says the UK is stuck with a stubbornly high inflation rate and it is unlikely the Bank of England will risk the economic recovery with an increase in the base rate. Figures this morning show inflation edged closer towards 4% in December, with the Consumer Price Index reaching an eight-month high. CPI is now 3.7%, up from 3.3% in November. Buxton says: "Inflation is stuck at around 4%. It has been stuck there for awhile and I think it will be stuck there for the next 12 to 18 months to be perfectly honest. "I do not think there would b...