Reflections and comparisons

In looking at the Bank of England's record over the last ten years, it is important to bear in mind that no central bank can fully control inflation due to globalisation and the growing influence of external shocks. Comparison of two periods, 1989 to 1998 and 1998 to 2006, however, yields some dramatic results. Since the 1998 Bank of England Act inflation has fallen dramatically from 3.7% to 1.5% on the CPI measure. Growth has risen significantly, from 2% to 2.7%. Compared to advanced countri