LONDON (MNI) – Bank of England Deputy Governor Paul Tucker warned
Monday that the bank’s ability to provide and sustain stimulus depended
on the credibility of its commitment to the 2 pct inflation target.
“Our ability to provide and sustain that stimulus depends
absolutely on the credibility of our commitment to the 2% inflation
target. If our credibility were to slip and medium-term inflation
expectations were to rise, we would have to run with a tighter monetary
stance than otherwise in order to put the genie back into the bottle”.
–London Bureau; tel: 00442078627492; email: dthomas@marketnews.com
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