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Weale: Inflation: Finely balanced risks
In a speech today at the City and Islington Sixth Form College, MPC member Dr Martin Weale, explains why he is confident that the MPC can return inflation to target and why, for him, ‘despite the international concern about very low inflation’, the decision of whether or not to tighten policy is ‘finely balanced’. Martin explains that while ‘it is likely that inflation will fall below zero at some point in the next six months’ this is not something to which the MPC could or indeed should respond: ‘Our work suggests that a change to Bank Rate takes about two years to feed through fully to inflation. The ... (full story)