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