MPC over-estimates inflation threat, research says

UK - The Bank of England's monetary policy committee has consistently over-estimated the threat of higher inflation, according to research to be presented today at the Royal Economic Society's annual conference.

Professor Ken Wallis of Warwick University, reports Tuesday's FT, has calculated that on average the MPC's forecasts of underlying inflation in one year's time have been 0.2 percentage points too high, and have tended to over-estimate the risk that inflation will be higher.

His findings

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

If you already have an account, please sign in here.

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account