Tuesday, 15 April 2008

Bank of England fails to meet inflation target (again)


It is a mark of how desperate the calls for a rate cut have become. Today, the CPI was flat, but well above the 2 percent BoE target. Yet, the news was welcomed as a sign that the Bank will feel confident enough to cut rates further.

Take a guess how many months in the last two years that the BoE actually met its inflation target? It has met it in 3 out of 24 months.

7 comments:

wagner said...

You seem disappointed that inflation hasn't gone up.

Anonymous said...

More like disappointed the BoE is consistently failing in the only target it has.

Nick

CWS said...

Some interesting posts on inflation at

http://bigpicture.typepad.com

Anonymous said...

"Take a guess how many months in the last two years that the BoE actually met its inflation target? It has met it in 3 out of 24 months."

Since the target is CPI = 2% +/1%, it looks like its meeting its target 90+% of the time.

Anonymous said...

If inflation really was at 2.5% it might not be so bad but don't tell me that anyone is buying that?

jdc said...

The target is not 2% +-1. The target is 2%. Check, and you'll see.

Jonesy1989 said...

Hi, I need to know the governments most recent inflation target - im doing an events management degree and this comes into my business module but i dont have a clue!!
Please e-mail me at jonesyel89@hotmail.com with the site you got it from so i dont feel like too much of cheat!
Id really appreciate it
Em x