BANK of England governor Mervyn King will face questions from MPs today amid increasing concern about economic difficulties in the UK.
Mr King will appear before the Commons Treasury Committee to discuss this month’s inflation report.
The Bank signalled two rate cuts were on the way in 2008 as the economy faces a squeeze from higher inflation and slowing growth.
It said inflation would meet its 2% target if borrowing costs fell by 0.5% from its current 5.75%. There are pressures from soaring food costs, higher oil prices and a weaker pound.
Today’s session also follows the summer’s credit crunch, which led to the crisis at Northern Rock, a downturn in the housing market and falling consumer spending. after a series of interest rate increases.
Mr King has previously faced hostile questioning from the committee over the state of the economy and the run on Northern Rock.