Do Inflation Expectations Currently Pose a Risk to Inflation?

16 Pages Posted: 20 Jun 2015

See all articles by Silvia Domit

Silvia Domit

Bank of England - Monetary Analysis

Christopher Jackson

Bank of England

Matt Roberts-Sklar

Bank of England

Date Written: June 18, 2015

Abstract

People’s expectations about future inflation play an important role in determining the current rate of inflation and so in the Monetary Policy Committee (MPC) meeting its remit. Measures of inflation expectations at both short and longer horizons have generally fallen over the past year. Despite that, most indicators are broadly consistent with expectations remaining anchored to the MPC’s inflation target. Lower inflation expectations could lead to weak inflation becoming more persistent, although there are few signs that weaker inflation expectations have weighed significantly on inflation over the recent past.

Suggested Citation

Domit, Silvia and Jackson, Christopher and Roberts-Sklar, Matt, Do Inflation Expectations Currently Pose a Risk to Inflation? (June 18, 2015). Bank of England Quarterly Bulletin 2015 Q2, Available at SSRN: https://ssrn.com/abstract=2620607

Silvia Domit (Contact Author)

Bank of England - Monetary Analysis ( email )

Threadneedle Street
London EC2R 8AH
United Kingdom

Christopher Jackson

Bank of England ( email )

Threadneedle Street
London, EC2R 8AH
United Kingdom

Matt Roberts-Sklar

Bank of England ( email )

Threadneedle Street
London, EC2R 8AH
United Kingdom

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
36
Abstract Views
413
PlumX Metrics