U.K. Inflation Rises Dramatically
This should hardly surprise anyone. You can't debase a currency the way the Bank of England has done and not expect the domestic purchasing power of the currency to slump.
Both British bond yields and the pound's exchange rate rose in response to the news, as belief increases that the Bank of England will have to reverse its inflationist policies. Given that the recovery remains very weak, I however doubt that there will be any monetary policy tightening anytime soon. And before they start to raise interest rates, they will likely first start to trim its quantitative easing first.