Bank's Weale warns that unstable and high inflation could return

(Source: Reuters)

Bank of England Monetary Policy Committee member Martin Weale has said that the problems of "unstable and high inflation" could return, warning that "the lessons from that get blunted with the passage of time".

Weale added that comparisons with the US Fed can be less than useful, as "circumstances are different" as the US has seen below two per cent inflation for 27 of the 51 months since 2009. In the UK inflation has only been below this level for six.

Noting the change to the Bank's remit Weale said that the "flexibility that the remit offers us can be used safely only while there is general confidence that the Monetary Policy Committee is committed to keeping inflation close to its target in the medium term".