There were fears yesterday that the Bank of England could raise interest rates after the European Central Bank issued a surprise warning that surging inflation could force it to lift eurozone rates as early as next month.


The ECB's abrupt move to a state of high alert over inflation stunned markets and triggered a scramble by the City to reassess the outlook for interest rates on both sides of the Channel. Both the Bank and the ECB held rates yesterday despite worsening economic prospects, spurning pleas for action to buoy growth as they continued their fight to quell rising inflation.

The Times