Tuesday, December 16, 2008
Mervyn gives up the pretence of trying to meet the inflation target – Quite incredible!
"In a letter to Alistair Darling, Mr King said that the Bank is effectively suspending its efforts to meet the 2pc CPI target until 2011 as a combination of the recession and the temporary VAT cut make inflation far more volatile than usual. The admission that the Bank will not aim to meet the target over the next year and a half will cause some consternation in the City, where inflation stability is viewed as one of the most important precepts of the central bank." And here was I thinking the inflation target has been missed for well over a year - hardly a 'temporary disturbance'!!! What a fraudster. We're in this mess BECAUSE he failed to more accurately track inflation.