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11 Mar 2015
“It would be extremely foolish” to loosen policy now – BOE Carney
FXStreet (Mumbai) - Bank of England Governor (BOE) Mark Carney reiterated on Tuesday while giving evidence on the economy in Westminster’s House of Lords, consumer price inflation hit the record low of 0.3% in January, and is expected to fall further toward zero in the months to come and remain there for the rest of this year.
When asked if it would be "extremely foolish" to be in a hurry to boost inflation now,
"Absolutely. That is one of the key judgments the MPC [Monetary Policy Committee] has to make. We were very transparent in a letter to the Chancellor about over what horizon we think we should return inflation back to target."
“The thing is that it would be extremely foolish to try to lean against this oil price fall today … because the impact of that extra stimulus .... would happen well after the oil price fall had moved through the economy and we would just add unnecessary volatility,"
When asked if it would be "extremely foolish" to be in a hurry to boost inflation now,
"Absolutely. That is one of the key judgments the MPC [Monetary Policy Committee] has to make. We were very transparent in a letter to the Chancellor about over what horizon we think we should return inflation back to target."
“The thing is that it would be extremely foolish to try to lean against this oil price fall today … because the impact of that extra stimulus .... would happen well after the oil price fall had moved through the economy and we would just add unnecessary volatility,"