BOE Must Keep Inflation Out of ‘National Psyche,’ CBI Says

The Bank of England will probably increase interest rates at a “slow and steady” pace starting in the next quarter to prevent soaring inflation from becoming embedded in the “national psyche,” the Confederation of British Industry said.

“We’re keeping a very close eye on potential for an inflationary wage spiral,” CBI Director-General John Cridland said as Britain’s biggest lobby group published its submission for Chancellor of the Exchequer George Osborne’s March 23 budget in London today. “We must not allow inflation to get back into the national psyche.”