►Jump in China inflation paves way for more tightening
Aileen Wang and Simon Rabinovitch/Reuters/Nov 11
Chinese inflation sped to a 25-month high in October and bank lending blew past expectations, highlighting the challenge faced by Beijing as it battles to keep a lid on price pressures.
The data left little doubt about why the central bank raised reserve requirements this week and pointed to further tightening steps, from rate rises to yuan appreciation, in coming months.
►Mervyn King: high inflation will not force rate rise
Larry Elliott and Nicholas Watt/Guardian/Nov 10
The Bank of England predicted today that inflation in Britain would remain above its target for the whole of next year as the rise in VAT in January and dearer imports affect the cost of living.
Mervyn King, the Bank’s governor, admitted that inflation continued to exceed Threadneedle Street’s expectations, but gave no hint that the nine-strong monetary policy committee was about to raise borrowing costs in response.