Bank hawk warns on prices

Martin Weale voiced fears over "persistent" inflation yesterday in a hawkish speech underlining the growing splits at the Bank of England over the path of monetary policy.

Mr Weale, a member of the monetary policy committee, voted for interest rate hikes at the Bank's meeting last year before Europe's debt crisis exploded last summer. Mr Weale added that the Bank may not extend its money-printing efforts beyond the £50bn in quantitative easing announced last month. Inflation is above the Bank of England's 2 per cent target at 3.6 per cent.