BOE’s Dale: 2011 growth around average levels, inflation above 4% and loose monetary policy means rates should rise

Good old Spencer recently joined Martin Weale in calling for 25 bps rate hike.

• UK inflation likely to be above target for next year or so, monetary policy “extraordinarily loose”
• Risk inflation could exceed BOE February forecasts due to global price pressures. Could erode MPC credibility
• Cautious about taking comfort from relative stability of surveys of inflation expectations
• Danger public may conclude above target inflation means MPC tolerates lengthy CPI deviations from target
• MPC must balance risk of slow recovery versus risk of extended period of above-target inflation

All pretty much what you’d expect from a monetary hawk. Has done nothing to lift sterling, cable at 1.6215, EUR/GBP up at .8698.