BoE MPC member Gertjan Vlieghe said yesterday that inflation is likely to overshoot the 2% target later this year, due to temporary bottlenecks and base effects. Though, “the fact that we’re going to have, or we’re likely to have, temporarily high growth rates and temporarily high inflation in the coming months, is not the main concern of monetary policy,” he said.
“Instead, monetary policy will focus on returning to inflation sustainably to its target, which requires focusing on the medium term outlook,” he added.
