LyrArc Article Gist
Bank of England Governor Mervyn King says the Monetary Policy Committee expects inflation to be above the 2% target till the end of 2015. King is aware of the slack in the British economy and low levels of wage inflation. He has indicated his approach to be flexible about inflation. The new Governor Mark Carney also favors flexibility in inflation targeting. The tradeoffs between inflation and growth are very much the focus of their attention. To support growth King supports a longer time period to bring inflation back to 2%.
Bank of England Governor Mervyn King says the Monetary Policy Committee expects inflation to be above the 2% target till the end of 2015. King is aware of the slack in the British economy and low levels of wage inflation. He has indicated his approach to be flexible about inflation. The new Governor Mark Carney also favors flexibility in inflation targeting. The tradeoffs between inflation and growth are very much the focus of their attention. To support growth King supports a longer time period to bring inflation back to 2%.
