what will the bank of england do next? ., , do next? it doesn t. our forecast. do next? it doesn t. our forecast, based - do next? it doesn t. our forecast, based on - do next? it doesn t. our. forecast, based on current price outlooks so no particular tinkering by the government perhaps other than taking the vat rate out, 6.3% rise in inflation, another big step higher and another headache for the bank of england. the higher inflation gets, the more it stays at high levels, the more it worries gets set into wage demands and inflation locked into the system and contract setting negotiations and that is a worry for the bank of england. if we take energy prices, food prices, the noisy bit out, it looks lower. but it is close to 4%, possibly below this month but that is a high level in itself. and the bank of england is worried that if you knock all of this noise out, inflation is still too