BOE Wrestles Inflation ‘Elephant’ as Debate Heats Up

Bank of England Governor Mervyn King’s commitment to keep up stimulus for the economy during the deepest public spending cuts in half a century is under attack.

King may today face renewed dissent by Andrew Sentance, who on June 10 sounded the alarm on inflation and made the first push in almost two years to raise the benchmark interest rate from a record low. The governor said a week later that the economy is still languishing in the aftermath of the recession and the bank can expand emergency bond purchases if needed.