Bank of England expects low inflation to continue

Minutes of the March MPC meeting showed members are now concerned that a persistently strong pound could keep inflation well below the Bank's 2% target for a prolonged period

A strong pound has increased the chance of a prolonged period of very low inflation, leaving the Bank of England in no hurry to raise interest rates, its senior policymakers suggested.

The Bank's rate-setting monetary policy committee said stronger growth prospects for the UK and a a1.1tn quantitative easing programme in the eurozone could push the pound higher.