BoE's King on inflation and the UK economy

In a speech given on 16 November Mervyn King of the Bank of England said inflation will likely rise further above its 2 percent target in the near term before falling back to meet it.

King, speaking in Wolverhampton to a business audience, essentially repeated comments he made on Wednesday.

"Overall, the central view is one of inflation rising further above the target in the near term, before falling back to target," King said in the speech.

"The risks around that benign central view are seen by

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