Daily Archives: February 4, 2013

Claire Jones

Pretty much everyone is expecting the Monetary Policy Committee to do the same thing it has done for the past six votes and stand pat on Thursday, when governor-designate Mark Carney is also due to appear before MPs at the Treasury Select Committee.

But one former deputy governor, Sir John Gieve, thinks there’s a chance that the MPC could vote in favour of easing policy. Read more

Claire Jones

Asked today whether the Treasury should scrap the Bank of England’s 2 per cent inflation target, former policy maker and current central banking guru Charles Goodhart said no. The target, he said, had done little to stop the Monetary Policy Committee easing rates and printing money to stave off an economic and financial meltdown.

Andrew Sentance, another ex rate-setter, agreed. “Inflation targeting hasn’t been the constriction it has been played up to be,” he said this morning.

A cynic would argue that this is because in recent years the BoE has ignored price pressures and instead focused on growth; inflation has been above 2 per cent since December 2009 — rising as high as 5.2 per cent in the autumn of 2011. Read more