BOE sees inflation rising, leading to higher interest rates next year

London

THE latest Bank of England (BOE) inflation report expects prices to rise in coming months and this should lead to higher interest rates in 12 months' time.

Due to the election, the BOE has not provided a forecast for some time but following poor 0.3 per cent growth in the first quarter, the bank has cut its real growth forecasts to 2.5 per cent this year, and 2.6 per cent in 2016, from previous predictions of 2.9 per cent.

"Uncertainty over the result and effects of the UK general election may have delayed some spending for example in the construction sector," says the BOE report, bu…