Bank of England Monetary Policy Committee member Catherine Mann is giving a talk in Dallas on inflation dynamics.
- says wage and price inflation are sticky downwards
- going forward the length of time inflation remains above target will be important given that inflation expectations tend to drift
- possible drift in expectations implies that policy has to be more aggressive
Dunno about you but I am reading these comments and classifying them ‘as clear as mud’.
This article was written by Eamonn Sheridan at www.forexlive.com. Source