Bank's Posen says inflation to drop in 2012 - Reuters
1:23, Monday 28 March 2011
LONDON (Reuters) - Bank of England policymaker Adam Posen was quoted as saying on Monday that inflation would drop to 1.5 percent by mid-2012 as the government's austerity drive and a weak economy would lead to a decline in consumer spending.
Posen, who has called for more money to be pumped into the economy, said he would not seek re-election to the Bank's Monetary Policy Committee if his view on quantitative easing turned out to be wrong.
"If I have made the wrong call, not only will I switch my vote, I would not pursue a second term," Posen said in an interview with the Guardian newspaper.
(Reporting by Karolina Tagaris; Editing by Ron Popeski)
That's consistent with what I hear and believe. Inflation will fall back next year, and the BOE must hold their nerve and not increase interest rates too soon this year.
