In an interview in the Irish Times outgoing MPC scapegoat Sir John Gieve is still, it seems, more worried about inflation, than the plunge by the UK economy into recession. He expects inflation to carry on rising in the coming months and says that the sharp economic slowdown is what is required to bring inflation lower. The MPC’s reluctance to move in a pre-emptive fashion as Oil and Food price rises rerverse will only serve to keep the markets speculating that the UK downturn may be more severe than the Old Lady has bargained for.