A series of quarter-point interest rate hikes will begin in May, according to analysts examining Bank of England governor Mervyn King's latest obligatory letter to the Chancellor.
Threadneedle's Simon Brazier has revealed the three factors he believes could stall the UK's "muted economic growth".
The Bank of England topped up Governor Mervyn King's pension pot by £1.4m after deciding to award him an early payout in 2008.
A contraction in GDP figures yesterday proves the UK recovery will be "choppy", says the Bank of England's Mervyn King who urges households to face up to austerity.
The economy suffered a marked slowdown in growth in the final three months of last year, official figures released tomorrow are expected to show.
Inflation edged closer towards 4% in December as the rising cost of food and oil products continued to hit the price of goods and services.
Sterling touched a three-month low against the dollar before rebounding as the Monetary Policy Committee (MPC) revealed continued division on interest rates while UK growth was revised down.
Former Bank of England policymaker David Blanchflower has called for Mervyn King to quit over the US WikiLeaks affair.
Inflation is likely to remain high throughout 2011 but the Monetary Policy Committee (MPC) is more divided than usual over the reasons why, the Bank of England Governor says.