BANK’S GOAL IS NOT ALWAYS TO LOWER INFLATION, SAYS POSEN

CENTRAL banks should not simply look to lower inflation, but rather ensure price stability, the Bank of England’s Adam Posen said last night. “You need inflation a little above the zero measure to keep there being a lot of lock-ups in the economy,” he told a meeting at Aston University. Posen has been pushing for more quantitative easing, despite the Bank coming under fire as inflation has jumped to 3.7 per cent.