MPC maverick says inflation not a major threat - papers

Tim Besley, the Monetary Policy Committee member who surprised economists and markets by voting for higher borrowing costs only three months ago, acknowledged that the falls in food and energy prices had reduced the risks posed by inflation. He also admitted that the Bank had "learnt major lessons" about house prices, and hinted that it may need to target asset prices more rigorously in the future to prevent further booms. Speaking of a "rethinking of strategy of monetary policy", he said: "We have learnt major lessons about what happens when household indebtedness and house price rises...