–Posen: Expects Inflation To Keep Going Down in Eurozone
–Posen: Doesn’t See Inflation Going Down So Much In UK
LONDON (MNI) – It is hard to see where inflation is going to come
from at the current time, and it is likely to keep falling in the
eurozone, Bank of England Monetary Policy Committee member Adam Posen
said in a Bloomberg Radio interview.
Posen said that for various reasons inflation may not keep falling
so much in the UK. He nevertheless highlighted the output gaps and lack
of wage pressure in advanced economies.
“It is a real puzzle for people. The outlook … in a number of
countries, particularly the euro area, but probably the US and for
various reasons not so much the UK, we do expect inflation to keep going
down,” Posen said.
“I personally expect inflation to keep going down,” he added.
Posen said a colleague of his at the Peterson Institute for
International Economics “has been writing about how the Fed needs to do
more because he expects inflation to head towards deflation.”
“I am not there (on deflation) but you have got an output gap, you
have got very well anchored inflation expectations, you have got nobody
demanding wage increases,” he said.
–London newsroom: 4420 7634 1624; email: drobinson@marketnews.com
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