Two Current Monetary Policy Issues

14 Pages Posted: 26 Apr 2005

See all articles by Stephen Nickell

Stephen Nickell

Bank of England - Monetary Policy Committee; University of Oxford - Nuffield Department of Medicine


In this speech, Stephen Nickell, member of the Bank's Monetary Policy Committee, looks at two issues: first, the impending switch to targeting the HICP inflation rate and, second, the implications of the steady rise in household debt. The key conclusion on the first issue is that a switch to an HICP target of 2% today should have little or no impact on the current stance of monetary policy despite the large gap between RPIX and HICP inflation. On the second issue, he dismisses the argument that interest rates should be set above the level required to hit the inflation target in order to discourage further household debt accumulation.

Suggested Citation

Nickell, Stephen and Nickell, Stephen, Two Current Monetary Policy Issues. Bank of England Quarterly Bulletin, Winter 2003, Available at SSRN:

Stephen Nickell (Contact Author)

University of Oxford - Nuffield Department of Medicine ( email )

New Road
Oxford, OX1 1NF
United Kingdom

Bank of England - Monetary Policy Committee ( email )

Threadneedle Street
London EC2R 8AH
United Kingdom

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