WARWICK (MNI) – Bank of England Monetary Policy Committee
Adam Posen member Adam Posen said the cetral forecast in the February
Inflation Report was pretty close to his own.
The February Inflation Report show inflation rising to around 1.8%
in two years time and up to 1.9% in three years’ time, close to the 2.0%
target. This projection has persuaded some analysts the MPC will not
carry any more quantitative easing, and although Posen is seen as the
arch-dove he did not take issue with the forecast.
Speaking to reporters here Posen said “November’s forecast and this
forecast are very close to where I would be … as opposed to preceding
forecasts where I was very clear about where there was a strong
difference between us.”
The MPC sanctioned Stg50 billion of QE at its February meeting.
Posen declined to comment on whether he had favoured more, with next
week’s minutes set to reveal this.
“You will find out the votes. Whatever the votes are if you look at
what we are forecasting, assuming the policy we have now put in place,
that gets us close to target with the risks pretty balanced,” he said.
“It is hard to complain about that if you are an inflation
targeting central bank,” he added.
–London newsroom: 4420 7 862 7491; email: drobinson@marketnews.com
[TOPICS: M$B$$$,M$$BE$,MT$$$$]
