Economists: 20% chance of rate rise today - papers

The City sees a one-in-five chance the Bank of England will raise interest rates today to combat rising inflation.

With inflation at almost twice the 2% target, the monetary policy committee (MPC) is coming under increasing pressure to take action, the Guardian reports. City economists attach a 20% chance to a rate increase at the MPC's monthly meeting today, but believe a move is more likely later in the year. While money markets have fully priced in a rate rise by May, only 21 out of 67 analysts polled by Reuters think rates will go up before the fourth quarter. Lib Dem peer quits frontbench over banking deal A Liberal Democrat peer has quit the frontbench after saying of Project Merlin 'i...