BANK OF ENGLAND governor Mervyn King's assertions yesterday that he is unhappy with the switch to me...
BANK OF ENGLAND governor Mervyn King's assertions yesterday that he is unhappy with the switch to measuring inflation according to the HICP index rather than the RPIX index has put the institution on a collision course with chancellor Gordon Brown says The Daily Telegraph. The problem is that housing costs are excluded from HICP, which could lead the bank to cut rates un-necessarily even if it is asked to lower its target rate to 2% from 2.5%. "Many people will think it a little bit strange to have an inflation measure which excludes house price inflation," the Telegraph write...
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