Today’s updated factsheet from the CPS’ Ryan Bourne – The recent history of MPC inflation forecasts – has been mentioned by Patrick Hosking in The Times.
The full article is well worth a read if you can get behind the paywall: “Savers are not off their trolley, just desperate”
Here is an extract:
“Savers desperately want a low-risk way of preserving capital in real terms. They are understandably sceptical about all those benign inflation predictions. They may very well be right to snap up those Tesco goodies.
The Centre for Policy Studies today publishes research showing how the Bank of England has got worse and worse at predicting inflation. The gap between its predictions and actual inflation has grown ever wider.
The Bank insists that it is every bit as concerned about inflation rising above its 2 per cent target as falling below it. But that neutrality is not supported by the experience of the past few years.”
Date Added: Wednesday 7th December 2011