BofE chief George saved from letter to chancellor

UK - The prospect of an imminent rise in interest rates receded yesterday after an unexpectedly sharp fall in underlying inflation to its lowest level for at least 27 years.

Sir Edward George, governor of the Bank of England, was saved by the slimmest of margins from writing an explanatory letter to Gordon Brown, chancellor, after RPIX, which excludes mortgage interest payments, fell to 1.5 per cent, one percentage point below the Bank's 2.5 per cent target.

If the underlying inflation rate

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