The BOE released their inflation report today, saying that inflation will continue to rise over several quarters forcing Mr. King the BOE Chairman into reporting multiple letters of explanation to the government as inflation is expected to remain above the upper limit for the U.K government at 3.00 percent.

Over the short term inflation expectations have risen and upside risks to inflation remains a threat over the medium term and should those risks persists over the medium term the BOE would have to counter those risks to prevent inflation from becoming a long term dilemma.

While downside risks to growth also persists alongside the rising inflation, the BOE projections show that growth expectations were lowered for 2009 to nearly 1.0 percent, while for this year they expect the economy to continue growing over an annualized rate though there's a possibility for negative growth over the quarters.

The BOE however don