BOE’s Dale: Stickiness in inflation may persist

Author: Pete Jackson | Category: News
  •  Would likely not have backed government in more QE last month, even without stimulus Gilt coupon transfer
  • Coupon transfer not an economic problem, but large money flows between  BOE and Government does raise  understandable concerns
  • Monetary policy can only play a limited role in easing painful economic adjustments, size needed meant some had to come from inflation as well as wage restraints
  • Spare capacity in the UK is not a sufficient gauge of inflationary pressures