Rate-setting member Kristin Forbes outlines how failure of strong pound to hold down inflation could immediate early riseA senior Bank of England official has raised the prospect of interest rates rising sooner than expected if economists are proved mistaken approximately the power of a strong pound to hold down inflation.Kristin Forbes,one of the nine rate-setting members of the Bank’s monetary policy committee, questioned whether current economic models were accurately reflecting the relationship, and “pass-through”,between exchange rates and the outlook for inflation. That, in turn, and had important implications for monetary policy,she said in a speech.
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Source: theguardian.com