King Inflation Stance Backed by CBI as UK Recovery Proves Elusive

From businessweek.com

The Bank of England is right to look through accelerating inflation to help the economy, the country’s biggest business lobby group said, backing Governor Mervyn King’s view that tighter policy now would be a mistake. As King prepares to publish the Bank of England’s latest economic outlook in its Inflation Report in London today, the Confederation of British Industry cut its 2013 growth projection to 1 percent from 1.4 percent and forecast that the central bank will keep policy unchanged until near the end of 2014. The CBI endorsement follows a BOE statement last week that its current stance is ... (full story)