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The Bank of England might not increase interest rates until 2012, according to the centre for economics and business research (cebr). The think tank suggests newly appointed Monetary Policy Committee (MPC) member, Dr Martin Weale, could follow Governor Mervyn King’s lead in wanting to keep interest rates lower for longer to accommodate fiscal tightening, rather than focusing on rising inflation expectations when inflation is actually falling back. Noting the MPC’s remit is to focus on inflation two years down the line, the cebr said: “Given this is exactly when public sector cuts will really be starting to bite, adding to the slack in the economy and, in particular, the labour market, we see little reason for an interest rate rise this year or next.”