Caution on interest rates

THE governor of the Bank of England, Mr Eddie George, hinted yesterday he may have disapproved of a cut in British interest rates…

THE governor of the Bank of England, Mr Eddie George, hinted yesterday he may have disapproved of a cut in British interest rates last month, saying the move made it less likely inflation targets would be met in two years. Speaking to a parliamentary committee, he added that inflation would probably be higher in 1998 than the Chancellor of the Exchequer, Mr Kenneth Clarke's official forecasts suggested.