Bank of England asked to focus on CPI and not growth

The Bank of England’s Monetary Policy Committee now needs to focus on its main inflation objective, and not worry too much about trying to forecast growth, Bank policymaker Andrew Sentance said on Monday.

Sentance added that looming fiscal tightening should not be seen as a “show-stopper” in the way of raising interest rates.

“We are moving into a period when the MPC has to keep its eye on the inflation target objective and not have a strong view on how strong growth will or will not be. We cannot predict that. It will be something that will also depend on the supply side of the economy,” he said in a question and answer session after a speech in London.
Source: Reuters

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