BoE policymaker warns against complacency on price rises
The senior Bank of England monetary policymaker Ian McCafferty has admitted that it is "easy" to see why people might think that the Bank has become tolerant of higher inflation.
Mr McCafferty, pictured, also launched a defence of the existing Bank inflation targeting framework and warned against "repeating the mistakes of the past", in a move likely to be seen as a hawkish message to the incoming Governor, Mark Carney.
In a speech in London, Mr McCafferty said although the Monetary Policy Committee has not become more relaxed about the cost of living rising above the Bank's official 2 per cent target, "it would be easy to see why some might think so" given persistent overshoots since the financial crisis.
Over the past five years the Bank has had to write to the Chancellor 12 times to explain why inflation has been more than 1 per cent above target.
Pointing to the UK's experience of double-digit inflation rates in the 1970s and 1980s, Mr McCafferty added that "there is a risk that the low and stable inflation of the past two decades is now being taken for granted". He stressed the need for policymakers to avoid "complacency".
Diving in at the deep end is no excuse for shirking the style stakes
- 1 Game of Thrones author George RR Martin says 'f*** you' to fans who fear he will die before finishing Westeros saga
- 2 PornHub begs users to stop uploading video clips of Brazil getting beaten 7-1
- 3 Why I'm on the brink of burning my Israeli passport
- 4 War is war: Why I stand with Israel
- 5 L'Oreal cuts ties with Belgium supporter Axelle Despiegelaere after hunting trip photographs
Game of Thrones author George RR Martin says 'f*** you' to fans who fear he will die before finishing Westeros saga
Loom bands: Bids for dress made from colourful rubber reach almost £154,000 on eBay
Supermoon 2014: When and why will the moon look bigger and brighter this summer?
Gaza-Israel conflict: The terrible price children are paying for Israel’s war with Hamas
Online trolls target alleged rape victim Jada, by copying how she appeared in video of attack
Sustained immigration has not harmed Britons' employment, say government advisers
Australia facing international condemnation after turning around Sri Lankans at sea
7/7 memorial defaced on anniversary of 2005 attacks with ‘Blair lied thousands died’ graffiti
War is war: Why I stand with Israel
Even when it brutalises one of its own teenage citizens, America is helpless against Israel
Socialist Worker called to apologise over ‘vile’ article saying Eton schoolboy Horatio Chapple's death is ‘reason to save the polar bears’
iJobs Money & Business
£50000 - £70000 per annum: Harrington Starr: Business Analyst Consultant (Fina...
£300 - £350 per day + competitive: Orgtel: My client, a leading bank, is curre...
£28000 - £32000 per annum + pension, 25 days holiday: Ashdown Group: A highly ...
Negotiable: Randstad Education Birmingham: Randstad Education are seeking a Fi...