The UK's Inflation Problem: Selling England by the Pound? - speech by Andrew Sentance

In a speech to the Institute of Economic Affairs 'State of the Economy Conference' in London, Andrew Sentance - External Member of the Monetary Policy Committee - discusses the outlook for inflation in the United Kingdom, explains why he thinks that inflationary pressure is greater than suggested by the MPC's latest Inflation Report forecasts and why higher interest rates are now needed.
Published on 17 February 2011

Andrew Sentance begins by asking: "Why has inflation turned out persistently above target, despite the widespread expectation that it would be pushed down by the financial crisis and the global recession?" The answer, he argues, is that ".too much faith is being put on the impact of a large 'output gap' pushing down on inflation and not enough weight has been put on the upward pressure from the global environment and the exchange rate".

PDFPress release

Other news