Inflation: Is the Bank of England really capable of controlling it?

16th February 2011

In the Telegraph commentators have seized on the language used by King in his obligatory letter to Chancellor George Osborne this week explaining why the bank missed its inflation target again.

The letter, the fifth in a row, is usually seen as a formality. But experts including Nomura economist Philip Rush say the language used is unprecedented with King saying he believes inflation will be around target, at 2pc in two or three years, "under the assumption that the bank rate increases in line with market expectations".

Leave a Reply

Your email address will not be published. Required fields are marked *