UK Interest Rates On Hold Despite Inflation Fears

LONDON, January 27, 2011 - In spite of City demands for a modest increase in rates, Robin Bew at the
Economist Intelligence Unit believes the Bank of England will keep rates
where they are. The economy remains too weak to sustain a rate increase even
if inflation trends higher.

In his latest Global Forecast broadcast on www.cantos.com, the
EIU's editorial director believes banks must not be over-regulated as a
result of Basel III.

The point isn't to worry about banking strength, he says, but to make
sure these financial institutions function in such a way that the wider
economy gets the volume of credit it needs.

The interview and transcript are available now on
www.cantos.com/eiu.

Cantos.com, the online financial broadcaster, features in-depth
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would like to contact us, please email amanda.alexander@cantos.com or phone
+44-207-936-1352.

If you would like to contact us, please email amanda.alexander at cantos.com or phone
+44-207-936-1352.