Bank of England warns on tax cuts

The Bank of England, the UK central bank, has warned that it is premature to rule out further interest rate rises and threatened an immediate response if the government makes big pre-election tax cuts.

Sir Eddie George, governor, said the Bank would not hesitate in raising its repo rate, currently at 6%, if Gordon Brown, chancellor of the exchequer, announced tax cuts that jeopardised its inflation target. "We are not told to abstain from actions in relation to the political timetable," he told

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