As the effects of inflation data on Tuesday, looks increasingly likely the emergence of Governor of the Bank of England to the Treasury Committee. One member of the committee, Liberal Democrat John Thurso, said that he wants to get proof from the King that the Bank will not quietly abandoned inflation targeting. He's not alone, other lawmakers expressed similar concerns in recent times.
Comes very difficult time for the Monetary Committee in respect of a rate hike after he had so long been tolerant to higher inflation. Someone from the committee will have to swallow the bitter pill. Most often easier to tighten by a smaller amount before too long to wait, and in the end spend more tightening. The Bank has been tolerant of inflation, and the market, in turn, was tolerant to the Bank. However, evaluation of market inflation rate jumped 300 basis points in recent weeks, so that the market obviously running out of patience.
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