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BoE's Broadbent: BoE to Watch for Signs of 'Bad' Deflation
Consumer price inflation fell to zero in February, and is expected to fall further below in the first half of this year. But the possibility of a prolonged period of downward spiraling prices is very low in the UK, BoE Deputy Governor Ben Broadbent said today. In a speech given today at the Imperial College Business School in London, Broadbent said that the UK is currently experiencing “good” deflation, which he said is deflation that has “been caused by something (a drop in oil prices) that improves real incomes.” But he also said that inflation will remain below target [2%] for the next twelve months, and ... (full story)