By Andrew Haldane of the Bank’s Monetary Assessment and Strategy Division.
In June, the Government updated its inflation target: the authorities will continue to aim at a target for RPIX inflation of 21/2% or less beyond the end of the present parliament.
Earlier this year, the Bank organised a conference attended by representatives of the central banks of countries using inflation targets as the basis for their monetary policy framework. This article summarises a number of the main issues—both conceptual and technical—raised by the use of inflation targets, which were discussed at that conference.
Inflation targets