Bank of England causes inflation, claims Sentance

Sentance, who resigned from the MPC in June, said the committee formed a dangerous "consensus" around the Bank of England Governor Mervyn King. Speaking at the M&G inflation conference, he added that if the MPC votes for more quantitative easing (QE) tomorrow it will show it "is no longer acting consistently with a 2% target [and] confirm that they are acting with an inflationary bias". "The MPC has no track record of taking tough monetary policy decisions to underpin its credibility," he said, adding that despite recent forecasting errors, the MPC would still be placing emphasis on t...