OMG, how can he cope with that? 
Mervyn King will have to explain why the Bank's Monetary Policy Committee (MPC) failed again to meet its remit of 2pc inflation if, as expected, the annual rate was above 3pc in July.
Economists predict that data published by the Office for National Statistics on Tuesday will show that the Consumer Prices Index (CPI) – Britain's official measure of inflation – was 3.1pc, slightly lower than the 3.2pc annual rate in June.
CPI inflation has been above the target for much of the past four years, and above 3pc since the beginning of the year, persistently requiring Mr King to explain why the MPC is not tightening monetary policy to combat higher prices.
"It's not too hard to see why concerns have emerged that the MPC is ignoring the warning signs on inflation," said Jonathan Loynes, of Capital Economics, the independent research consultancy. "After all, it has underestimated the strength of price pressures over the last few years."
The latest forecasts from the Bank, published in its August Inflation Report last week, showed that it expects inflation to be above target until the end of 2011.
However, Mr King has repeatedly argued that high inflation will be the temporary result of one-off shocks – including higher fuel prices and, from January 2011, the rise in VAT to 20pc from 17.5pc – while a sustained UK economic recovery is not yet guaranteed. The inflation debate has caused division in the MPC, prompting one member – Andrew Sentance – to vote for a 0.25 percentage point rise in interest rates in June and July. Rates were again held at 0.5pc at the August meeting, minutes of which are to be published on Wednesday.
However David Page, economist at Investec, said the minutes could reveal the first three-way split in voting in two years. He predicted that two members voted for a further loosening of policy through an expansion of the Bank's £200bn quantitative easing target, after signs of a slowdown in the global economic recovery.
"We think that minutes to this meeting could prove interesting. Ahead of the decision, an apparent softening in pace of some international economic recoveries and deterioration in key domestic survey evidence went a long way to undoing the good news of improving financial market sentiment," he said.
Source: Bank of England boss Mervyn King set to write inflation letter to Chancellor George Osborne - Telegraph
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Mervyn, just in case you are reading this - get the rates where they should be ffs - 5%+
Mervyn King will have to explain why the Bank's Monetary Policy Committee (MPC) failed again to meet its remit of 2pc inflation if, as expected, the annual rate was above 3pc in July.
Economists predict that data published by the Office for National Statistics on Tuesday will show that the Consumer Prices Index (CPI) – Britain's official measure of inflation – was 3.1pc, slightly lower than the 3.2pc annual rate in June.
CPI inflation has been above the target for much of the past four years, and above 3pc since the beginning of the year, persistently requiring Mr King to explain why the MPC is not tightening monetary policy to combat higher prices.
"It's not too hard to see why concerns have emerged that the MPC is ignoring the warning signs on inflation," said Jonathan Loynes, of Capital Economics, the independent research consultancy. "After all, it has underestimated the strength of price pressures over the last few years."
The latest forecasts from the Bank, published in its August Inflation Report last week, showed that it expects inflation to be above target until the end of 2011.
However, Mr King has repeatedly argued that high inflation will be the temporary result of one-off shocks – including higher fuel prices and, from January 2011, the rise in VAT to 20pc from 17.5pc – while a sustained UK economic recovery is not yet guaranteed. The inflation debate has caused division in the MPC, prompting one member – Andrew Sentance – to vote for a 0.25 percentage point rise in interest rates in June and July. Rates were again held at 0.5pc at the August meeting, minutes of which are to be published on Wednesday.
However David Page, economist at Investec, said the minutes could reveal the first three-way split in voting in two years. He predicted that two members voted for a further loosening of policy through an expansion of the Bank's £200bn quantitative easing target, after signs of a slowdown in the global economic recovery.
"We think that minutes to this meeting could prove interesting. Ahead of the decision, an apparent softening in pace of some international economic recoveries and deterioration in key domestic survey evidence went a long way to undoing the good news of improving financial market sentiment," he said.
Source: Bank of England boss Mervyn King set to write inflation letter to Chancellor George Osborne - Telegraph
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Mervyn, just in case you are reading this - get the rates where they should be ffs - 5%+
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