MPC's Posen: Criticism of interest rate policy 'nonsense'

The Bank for International Settlements (BIS) singled out the Bank of England when it warned in its annual report the era of "near-zero" interest rates needs to end, reports the Telegraph. Highlighting the fact inflation in the UK has been above its 2% target since December 2009, it said: "One wonders how long [the MPC's] current policy can be sustained." Posen, who has voted not only for rates to be left on hold but for the Bank to inject another £50bn of quantitative easing into the economy since October, said stagflation - low growth and high inflation - is unlikely in the UK. He...