Stability and Statistics - speech by Rachel Lomax

Speaking today to the North Wales Business Club, Rachel Lomax, Deputy Governor for Monetary Policy, notes that the past decade has been a time of unparalleled stability for output and inflation, creating a much better climate for business.
Published on 23 November 2004

No wonder the rise in oil prices makes people nervous. What's to prevent low inflation and steady growth slipping away in future as they have in the past?
She argues that much has changed in the past fifteen years. The present approach to setting interest rates provides much better incentives to make the right decisions. Over the past seven years there has been a "remarkable de-coupling of inflation expectations from economic disturbances" such as sharp rises in oil prices. This is encouraging evidence that the new monetary policy framework is "doing its bit to ensure continued economic stability."

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