Policymaker Sentance talks again of high inflation

| September 27, 2010 | 0 Comments

Andrew Sentance, one of the Bank of England’s Monetary Policy Committee (MPC) members, has once again spoken of stubbornly high inflation.

Minutes of the Bank’s meeting earlier this month, again showed that Mr Sentance had voted to lift interest rates to combat inflation.

It was the fourth consecutive month he had voted for a rise.

Today in an article for The Times, Mr Sentence said: “Since the 1990s we have had a framework for setting interest rates, which has built confidence that low and stable inflation will be maintained.

“This confidence must not be eroded by a perception that the MPC is becoming more tolerant of higher inflation,” he added.

UK inflation currently stands at 3.1% – the ninth consecutive month that inflation has been above the Bank of England’s target of 2%.

The CPI inflation rate is a benchmark for the MPC but the Committee continues to vote to keep UK interest rates on hold at the historically low level.

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