LONDON (Dow Jones)--Bank of England policymaker Adam Posen said Tuesday the central bank's inflation forecasts for 2013 and 2014 are too high.
In a speech in Oxford, England, Posen said he expects the rate of inflation to fall below target because of weaker-than-expected growth in private consumption as households build savings and the government's austerity measures bite.
He added that a rise in Britons' short-term inflation expectations won't drive wage agreements higher and push up inflation.
Posen is often regarded as the most dovish member of the nine-man monetary policy committee that sets the benchmark interest rate, or bank rate, in the U.K.
He has voted for an increase in the bank's asset purchase program to GBP250 billion from GBP200 billion and to maintain bank rate at 0.5% at every MPC meeting since October 2010.
In a speech in Oxford, England, Posen said he expects the rate of inflation to fall below target because of weaker-than-expected growth in private consumption as households build savings and the government's austerity measures bite.
He added that a rise in Britons' short-term inflation expectations won't drive wage agreements higher and push up inflation.
Posen is often regarded as the most dovish member of the nine-man monetary policy committee that sets the benchmark interest rate, or bank rate, in the U.K.
He has voted for an increase in the bank's asset purchase program to GBP250 billion from GBP200 billion and to maintain bank rate at 0.5% at every MPC meeting since October 2010.
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or australian really.
.....missed the opportunity by 5 pips entrance to the trade..
