BoE's Sentance on inflation and the UK economy

In the speech 'Inflation and the supply side of the UK economy' given on 16 January Andrew Sentance of the Bank of England warned that the level of domestic demand in the UK needs to restrained in order to bring inflation back to the level targeted by the central bank.

"If inflation is to be brought back to target and remain there, demand needs to be appropriately restrained and expectations of inflation by wage and price-setters must remain consistent with the 2 pct CPI target," Sentance said

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