Bank of England Inflation Report, May 2007

The Bank of England published its May 2007 Inflation Report on 16 May. At a press conference BoE governor Mervyn King signalled interest rates may have to increase again to bring inflation back to target.

``There is an unusual degree of uncertainty about the outlook for inflation,'' the Bank said. ``The risks are judged to be balanced in the near term and weighted to the upside in the medium term.''

King told the press conference that the ``crucial question'' on inflation is about what level it

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