A financial thinktank believes that January's consumer price index will not have a large bearing on interest rates

A financial thinktank believes that January's consumer price index will not have a large bearing on interest rates

The Centre for Economics and Business Research's (cebr's) economist Jonathan Said commented that year-on-year inflation is running at 1.9 per cent, which is the same level recorded in December 2005.

"We do not believe the inflation figure raises the probability of lower interest rates any time soon, because of lingering price input concerns." said Mr Said.

The cebr's statement preceded comments made by Mervyn King, governor of the Bank of England today, which suggested that an interest rate cut in the spring was unlikely.

At the Bank of England's quarterly report press conference this morning, Mr King suggested that a stable approach to interest rates was most likely to benefit the economy in the near future because of both upward and downward pressures on the economy.

The bank's monetary policy committee last cut interest rates in August 2005 to 4.5 per cent.