Bank of England predicts inflation will spike to 4% by the end of 2021

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The Bank of England today predicted inflation will spike to four per cent in the fourth quarter of 2021 - double its target of two per cent. 

The Bank's Monetary Policy Committee (MPC) said it expects inflation to continue to creep up, with the economy facing a 'more pronounced period of above-target inflation in the near term' than previously expected as it recovers from the coronavirus crisis.  

However, the committee said it expects the surge to only be temporary, forecasting a return to target by 2023.   

Meanwhile, the MPC's eight members voted unanimously in favour of holding interest rates at the historic low of 0.1 per cent. 

The committee's latest report said that inflation is likely to rise from the current rate of 2.5 per cent to four per cent by the end

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