Recovery likely to push inflation above 3% by end of year, says Bank

UK interest rates put on hold with post-Covid boom expected to have impact on prices in coming months

The Bank of England expects the strength of Britain's economic recovery to push inflation above 3% by the end of the year before falling back in 2022 as the post-Covid boom slows down.

Policymakers on Threadneedle Street's monetary policy committee (MPC), who have come under pressure to signal when interest rates will rise in response to higher levels of inflation, said the Bank's base rate should remain at 0.1% until the economic outlook was more certain.