Major inflation risks should ease, says MPC’s chief economist Dale

Debate over the Bank of England’s Monetary Policy Committee (MPC) has entered a particularly aggressive and vigorous phase as policy-makers struggle to assess the relative strength of upside and downside risks to inflation, Bank chief economist Spencer Dale said yesterday.

Dale said the policy debate was particularly aggressive at the moment as MPC members strove to work out whether risks of above or below target inflation were predominating.

The Bank currently forecasts that consumer price inflation of 3.1 per cent should fall back to its target level of two per cent by the end of next year, but this hinges on continued economic growth and ongoing public confidence that the central bank has not lost control of prices.