UK business secretary Vince Cable says the BOE should ignore imported inflation after noting that the UK is facing a nasty period of high oil prices. The BOE can offset UK budget cuts, he says.
The coalition government really likes the idea of the BOE keeping the pedal to the monetary metal to try and offset their budget cuts…With inflation forecast to rise to between 4 and 5%, it seems like monetary malpractice, however.
Cable has dipped quickly from the 1.5950 area from 1.5990 highs.