MPC moves to keep inflation in line

By Anfdrew Clare, financial economiist Legal & General Investment Management Since operational independence, the Bank of England's inflation target has never been outside 1.5% to 3.5%, despite the south east Asian financial crisis, the Russian debt crisis, the demise of the New Economy, the foot and mouth crisis and Gulf War II. All were events that might in the past have caused those of a weaker constitution to make significant monetary policy errors. However, some have argued that the Monetary Policy Committee (MPC) has been almost too successful. The MPC has managed to control av...