The stickiness in U.K. inflation may persist for a while, Bank of England Chief Economist Spencer Dale said Wednesday.
In a speech in London, he said the stickiness of inflation is a by-product of the real adjustment that economy has been forced to make and there is no easy fixes to such real adjustments.
Dale said he would not have voted for more quantitative easing at the November meeting even if the government's gilt coupon transfer had not happened.
Dale said the MPC will take into account the GBP 35 billion transfer of QE coupon cash in future decisions.
"In subsequent meetings, I'll take the Government's actions into account, both in terms of any decision to increase further the size of the asset purchase programme and, potentially, in terms of the timing at which we begin to tighten monetary policy," he added.
He said concerns that the central bank is no longer in control of monetary policy is 'misplaced'.
by RTT Staff Writer
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