BoE: Interest rates can be safely held

A study by the Bank of England suggests that rates can be safely held at 0.5% in order to prevent growth from stalling.

It shows that while energy and food costs are soaring, there is little evidence that short-term price rises are feeding through to wages or long-term price setting by big companies.

James Knightley, a senior economist from ING, says inflation could fall below target.

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