14 June 2013
Senior Bank of England monetary policymaker Ian McCafferty today admitted that it is “easy” to see why people might think the Bank has become tolerant of higher inflation.
McCafferty 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, McCafferty said that although the monetary policy committee has not become more relaxed about the cost of living rising above the Bank’s official 2% target “it would be easy to see why some might think so”, given persistent overshoots since the financial crisis.
