Wednesday, May 11, 2011 10:43 AM

BOE Expects Lower Growth, Higher Inflation; Pound Strengthens on Expected Hikes; What is the Source of Inflation?

Growth in the UK is slowing, however, inflation as measured by consumer prices is not. The same holds true in China, and the US.

Bloomberg reports Pound Surges, Gilts Slump After Bank of England Lifts Inflation Outlook http://www.bloomberg.com/news/2011-05-1 ... eport.html

The pound gained versus the dollar and the euro after the Bank of England said it sees inflation “markedly higherâ€