UK's King unlikely to take Fed tack on rate cuts

Mervyn King, the governor of the Bank of England, signalled he would prefer a gradual decline in rates on Tuesday in a speech that noted the risks to inflation as much as those to growth.

Speaking to business leaders in Bristol, he indicated that he would support a rate cut next month. Bank rate, now 5.5%, "is probably bearing down on demand," he said. But he warned the rate-setting monetary policy committee was "determined to keep inflation on track to meet the 2% target in the medium term."

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