MPC minutes reveal split on inflation concerns
Share
The Monetary Policy Committee was divided over inflation concerns for the UK economy, minutes from its latest meeting reveal.
Minutes from the MPC’s March 3 meeting show that members drew different conclusions about how the balance of risks to inflation were evolving in the UK.
While the committee said uncertainties around the outlook for inflation remained, the minutes said: “Some members considered that the upside risks to inflation had increased slightly over the month, others felt that the balance of risks had not changed materially.”
The committee says it is now keeping “under close review” inflation expectations.
The minutes said: “But so long as expectations remained broadly consistent with the 2 per cent inflation target, the key determinant of the medium-term outlook for inflation would be the balance between money spending and the economy’s supply capacity.”
If you enjoyed this article, sign up here to receive daily email updates from Money Marketing and Follow @_moneymarketing
Readers' comments (2)
Anonymous | 17 Mar 2010 2:32 pm
Not sure why the article heading talks of a 'split' when
"Some members considered that the upside risks to inflation had increased slightly over the month, others felt that the balance of risks had not changed materially"
those two views sound pretty similar to me.
Unsuitable or offensive? Report this comment
William Kingsley | 17 Mar 2010 2:33 pm
And in the real world, VAT has gone back up, there is yet more tax on fuel which is at a near record high, all of which line the pocket of The Chancellor but have the effect of helping to spiral inflation - any inflationary pressures in the economy are not driven by excessive consumer spending - they are Govt and Sterling driven so please keep interest rates at 0.5% or the economy will grind to a halt.
Unsuitable or offensive? Report this comment