Bank official Paul Fisher: Inflation nutters should not be allowed on MPC
The Bank of England should not focus exclusively on hitting its inflation target, policymaker Paul Fisher said yesterday, arguing only “inflation nutters” would risk financial stability or economic growth for the sake of a minor adjustment in prices.
Fisher said the Bank of England had a series of vital goals and must be able to balance each against the others without too much conflict.“The monetary policy committee should not be ‘inflation nutters’,” he said in a speech to Richmond University. Having governor Mark Carney chair each of the Bank’s committees aided cooperation, he said.
Meanwhile, new colleague Kirsten Forbes said the strong pound had helped to keep inflation below target, lowering price rises by about 0.8 percentage points so far this year.