BOE’s Dale: Stickiness in inflation may persist
- Would likely not have backed government in more QE last month, even without stimulus Gilt coupon transfer
- Coupon transfer not an economic problem, but large money flows between BOE and Government does raise understandable concerns
- Monetary policy can only play a limited role in easing painful economic adjustments, size needed meant some had to come from inflation as well as wage restraints
- Spare capacity in the UK is not a sufficient gauge of inflationary pressures
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