BoE external members reiterate commitment to keep inflation on target |
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Tue, 24 Apr 2007 10:26
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LONDON (Thomson Financial) - External rate setters on the Bank of England's Monetary Policy Committee today reiterated their commitment to keep the inflation rate on target.Appearing before the Treasury Select Committee, David Blanchflower said the committee would 'do everything to keep inflation down.'There was broad agreement among the ranks of the external members, namely Tim Besley, Andrew Sentance, Kate Barker and David Blanchflower on the matter and they stressed the importance of managing wider inflation expectations.For his part, Besley noted that it would be critical for the upcoming inflation report next month to communicate the MPC's determination to tackle inflation.He added that that the rate setting panel will see through short term volatility in inflation.Sentance, meanwhile, noted that the longer inflation stayed above the 2.0 pct target, the more likely that it begins to affect people's expectations.At last count, in March, the CPI annual rate hit an all time high of 3.1 pct, triggering the unprecedented move requiring BoE governor Mervyn King to write a letter of explanation to the Chancellor of the Exchequer Gordon Brown.sivakumar.sithraputhran@thomson.comss/rarCOPYRIGHTCopyright AFX News Limited 2007. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.
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