The Bank of England has many battles ahead. Inflation will not be one of them

The world accepts that spending is the way out of this crisis. Why is the Bank anxious at the faint prospect of rising prices?

Key figures at the Bank of England and the Treasury are displaying a disturbing tendency for caution when the recovery from a pandemic demands bold measures. From the murmuring of officials in background briefings to the speeches of prominent policymakers, every pledge to do whatever it takes" to rescue the economy during the pandemic comes with a clear rider.

Rishi Sunak will sound heroic this week when he tells parliament how Britain's economy can escape the effects of Covid-19. Money will be pledged - more than the 5bn Boris Johnson mustered in his recent FDR" speech. Behind the scenes, though, officials are concerned that the UK is weak and must be careful how it spends over the coming years.

Even Germany accepts that the pandemic has knocked the stuffing out of its economy and inflation is of no concern

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