Byline: By Nevill Boyd Maunsell Economics Editor
Mervyn King, governor of the Bank of England, set the stock market ablaze yesterday - albeit briefly - with what was interpreted as an indication that the Bank may not raise interest rates this year after all.
Nervous City markets had been pointing to at least one quarter-point rise increase in the cost of borrowing as inflation ran well ahead of the Bank's two per cent target.
Instead, Mr King pointed out that the economic slowdown the Bank's interest-setting monetary policy committee believes is necessary to bring inflation back to the target is "already in train".
The stock market, deeply …