Rising inflation puts Bank of England on the spot

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LONDON – The Bank of England will say on Thursday whether it is worried about a recent jump in inflation, which broke above the central bank’s 2% target and looks set to climb higher as Britain reawakens its economy from its coronavirus slumber.

With global policymakers grappling with economic overheating risks against the backdrop of huge stimulus programmes, Governor Andrew Bailey and other BoE officials have mostly said Britain’s faster price growth is likely to prove transitory.

But last week, the U.S. Federal Reserve began to move towards reducing its pandemic stimulus by signalling its first rate hike in 2023, a year earlier than previous projections, putting the focus on what other central banks might now do.

BANK OF ENGLAND SET TO UNVEIL ANOTHER BIG STIMULUS FOR UK

The BoE is expected to leave its benchmark rate at an all-time low of 0.1% and press on with its 895 billion-pound ($1.25 trillion)…

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