Bank signals one more rate rise for 2007

The Bank of England implied on Wednesday 14 February that interest rates will be raised one more time in 2007, to 5.5%.

The Bank sees inflation spiking in the second quarter of 2007 as a result of high expectations on the back of December and January figures. "Notwithstanding the recent decline in energy prices and easing import price inflation, CPI inflation is likely to remain elevated in the near term," the Bank cautioned in its quarterly report, published on Wednesday.

With inflation flirti