King: higher inflation is 'hand we have to play'

Presenting a downbeat quarterly inflation report, outgoing governor King said the Bank must play the hand it has been dealt and manage higher inflation for longer. The report suggested inflation would not fall back to its 2% target until 2016. His comments echo those of incoming governor Mark Carney, who said in a speech at the World Economic Forum in Davos last month that he is willing to see higher inflation for longer in order to boost the economy. Speaking this morning, King said of missing the target: “It is not desirable, but it is the hand we have to play.” The inflation ...