Some Reflections on the Mpc
6 Pages Posted: 30 Jul 2005
In this speech, Sushil B Wadhwani notes that it is encouraging that inflation expectations have fallen under the new monetary framework. However, because of the recent tendency to undershoot the target, he argues that it is important to keep the forecasting process under review. He presents evidence suggesting that, on average, the Bank of England's interest rate decisions have surprised the markets more than the decisions of other central banks, though, more recently, the gap has narrowed.
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