BoE's Tucker highlights inflation risk

The news on the British economy has got worse and inflation now looks more likely to fall sharply in 2009, but Paul Tucker, the executive director responsible for markets at the Bank of England, signalled Friday that the Monetary Policy Committee (MPC) would not cut just yet.

Tucker acknowledged that the downside risks to both growth and inflation had amplified since the Bank published its Inflation Report last month, but warned that "inflation expectations do continue to flash an amber light."

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