The findings mirror Friday’s CIPS purchasing managers’ index which suggested manufacturing was expanding at its fastest rate in more than four years

The findings mirror Friday’s CIPS purchasing managers’ index, which suggested manufacturing was expanding at its fastest rate in more than four years.But although most economists expect business growth to accelerate over the months ahead, the Chancellor’s forecast of 3 to 3.5 per cent growth for the coming year is still generally thought too optimistic. The Bank sets rates to target inflation two years out, when prices are expected to be close to or above target.A business trends report from the accountants BDO Stoy Hayward, published yesterday, shows business optimism and output at its highest levels since May 2000. Under this measure, inflation is just 1.3 per cent, way below the new inflation target of 2 per cent.Even so, this is not thought likely to deter the MPC from raising rates over the months ahead. However, there is a high degree of expectation of further rate rises later in the year, as growth returns to more normal levels.This week’s MPC meeting is the first to be governed by the switch to a new inflation target under the Consumer Price Index, which uses a more internationally recognised way of calculating inflation. The last rise was in November, when the repo rate was increased by 0.25 percentage points to 3.75 per cent.Evidence of weak consumer spending in the run up to Christmas, together with confirmation that the housing market is at last starting to slow, is thought likely to persuade the MPC to stay its hand, for the time being at least.

He says there is a “compelling case for bringing Londis and BFG together”, claiming that the combined group would have £5.5bn in sales.This would give it a buying power to rival Tesco and Sainsbury, which are also targeting the convenience store market. “Londis’s retailers would benefit from many commercial advantages to better compete in today’s rapidly changing trading environment. The Londis chilled and frozen food offers would be strengthened,” Mr Grimsey said. However, the shareholder action group remains committed to independence.BFG will meet with KPMG this week to establish the timetable for the auction process. “We intend to make a formal offer for Londis at the earliest opportunity, although we do not expect this to be in the immediate future,” George Greener, BFG’s chairman, said in an accompanying letter. “Our proposals would have given you £20,300 against the £10,139 you would have received from Musgrave.

This approach will underpin any future offer we make for Londis.”. Interest rates are expected to be left on hold when the Bank of England’s Monetary Policy Committee meets later this week, despite growing evidence of a sustained return to reasonable levels of economic growth. KPMG is understood to have received approaches from up to nine parties, including BFG.To keep up his offensive and get shareholders on side while the KPMG review is taking place, Mr Grimsey wrote to Londis’s 1,950 shareholders at the weekend to detail the benefits of joining the BFG group. KPMG has now been appointed to sort out Londis’s corporate governance issues, carry out a strategic review of the company and conduct an orderly auction. Shareholders were outraged that the directors stood to make £21m from the Musgrave deal while they would receive only £10,139 each.BFG promised to offer double this to each shareholder.