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Monday, May 18, 2009

The Bank of England and Deflation

"The Bank of England has stopped warning of deflation because it is no longer credible to do so. In truth, it never was. CPI inflation remains at 2.9pc – way above the Bank's target, as it has been for 31 of the last 33 months. As sterling has fallen, import prices have surged. In an open economy like the UK, that's highly inflationary."

Liam Halligan, Sunday Telegraph

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