Low inflation may erode bank's credibility

SPEECH - The Bank of England's credibility could be at risk if it continues to undershoot its 2.5 per cent inflation target for more than another two years, according to a member of the bank's Monetary Policy Committee.

MPC member Sushil Wadwani, known for his dovish views on inflation said the underlying rate of inflation has run below the Government-set target for 25 months and was expected to continue to do so for another two years.

Delivering a speech to the National Association of Business

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