Tuesday, April 24, 2007
MPC ‘look through the fog ‘
He said: 'CPI inflation has risen but now expect it to fall back - this could be a sharp fall back over the next four to six months.' Mr King was giving evidence to the Treasury Select Committee on the 10 years of the banks' monetary policy committee (MPC), which took control of interest rates in 1997. The MPC is charged with keeping inflation within a 1% range of the bank's 2% inflation target. The governor added that the committee's outlook for inflation was little changed despite March's rise and said that the MPC had to 'look through the fog to the medium-term prospects'.