Wednesday, 17 December 2008

Bank of England through the looking glass

November's CPI number was 4.1% - still more than twice the target of 2 percent.

The governor of the Bank of England has written his quarterly letter of apology to the Chancellor of the Exchequer (Link). In it he says he's going to be "looking through" all the current instability rather than actually doing anything about it.

In previous letters he was also "looking through" the situation; in fact he has always had a two-year horizon: "don't worry about now - it will all be fixed in two years!" He'll still be saying that in ten years' time.

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