The bank is to have the dilemma before, grown at a rate of 3.7%, almost double its 2% target is stagnating at a time of economic recovery from the recession. Food, oil and metal prices threatening inflation to about 5% of press in the coming months.

City economists place with a probability of 20% to an increase in the monthly meeting of the current monetary policy, but we believe that movement is more likely that later this year. While the capital markets fully pricing a rate hike in May, only 21 of the 67 analysts polled by Reuters that prices will rise until the fourth quarter.

"We expect hope twill MPC leave rates unchanged at the next meeting, but an appeal may be much closer than many," said Michael Saunders at Citi. "We expect inflation to remain above target for a long time not only this year but probably 2012-2013, too."

Interest rates have stagnated at a record low of 0.5% since March 2009. The last time the Bank raised borrowing costs in July 2007, a quarter to 5.75%. He has an under-estimation of the financial crisis has been criticized already underway then and was forced to cut rates again in December.

Despite the downgrading its economic forecasts this week, the CBI expects to start rising borrowing costs in coming months as the bank tries to control inflation. It is assumed that the interest rate rise this spring at the end of the year at 1.25%.

Speech by Deputy Governor Charles Bean Bank last week that the MPC could be forced to raise interest rates if rising raw material prices to believe that the Bank is drawing ever closer, continue tightening policy. Last month, he joined Martin Weale Andrew Sentance, who has voted for higher prices since June, to support an increase by a quarter point. Sentance argued that the Bank risks losing its credibility against inflation if it does not act quickly.

Philip Shaw, chief economist at Investec, said: "Given the voting rights at the meeting last month, a burst of three members to tip the scales in favor of accept [today] it is not possible, mounted our opinion, if not impossible.? but it seems unlikely. "

Both Bean and Sentance said they are also with the economic contraction of 0.5% in the fourth quarter of last year, caused largely by the chaos of the snow, without which the growth had stagnated busy. Since then, polls have a boom in services, manufacturing and construction in January, as the weather showed improvement. But business groups warned the recovery is still ill and urged the Bank to calm or risk the collapse of the British remain in recession.

Shaw added. "If the economy away roaring, interest only when to bite the spending cuts begin and taxes go back (though modest) is a dangerous thing to do with budgetary issues is still in your mind, we believe that this is a big part of dislike, Mervyn King, to raise interest rates, explains. "