BOE’s Fisher does not share Sentance’s inflation fears

Plenty of capacity room and labor will keep UK inflation subdued during the recovery.

These comments counter the inflation fears of his colleague Mr. Sentance from yesterday. He calls the 25% depreciation of the pound since mid-2007 a “reappraisal” of the UK economy. Holding rates steady in June was sensible as inflation is likely to fall.

Fisher warns of tightening prematurely, saying deflation risk is not gone.

A mild downer for the pound. EUR/GBP is barely above trend lows, now at 0.8085.

If I were a headline writer for a UK tabloid, I’d have to say “Fisher hits out at Sentance over inflation fears”