The Confederation of British Industry (CBI) projects that the BOE will raise interest rates in the upcoming six-months to tackle elevated inflation levels. The CBI projects an increase of a quarter-point each quarter, starting Mid-2011 until rates reach 1.5% - 1.75% by Mid-2012.

CBI Chief Economic Adviser Ian McCafferty stated that The persistent strength of energy and commodity prices is a growing concern, as it is likely to mean that inflation does not fall back quite as sharply as many hope, adding that Growth at the start of 2011 is likely to be very sluggish, although we do expect the recovery itself to stay on track.