The Conflicted Bank of England
Andrew Sentance, an outgoing member of the Bank of England’s Monetary Policy Committee, has limned a credibility-challenging scenario for the BOE, according to which contradictory forces could keep annual inflation significantly above the 2% target not only this year and next year, but even in 2013. And, unfortunately, a stronger currency is not an option for reining in price growth.
OXFORD – Andrew Sentance, an outgoing member of the Bank of England’s Monetary Policy Committee, has outlined a credibility-challenging scenario for the BOE. There are two contradictory forces that could keep inflation significantly above its 2% target not only this year and next year, but even in 2013.