BoE's King explains reasons for rate rise

Appearing before the Treasury Select Committee on Thursday 20 November, Mervyn King, governor of the Bank of England gave the reasons for this month's 25 basis point rise in interest rates - the first in nearly four years. A combination of positive external outlook, domestic growth moving towards trend and inflation target meant it was time for a dab on the brake.

UK demand figures had been revised upwards to near trend and inflation in the UK had been above the Bank's 2.5% target for nearly