Comments: Gieve on the credit crisis

HI David

We'll IMHO they shouldn't be constrained by "short term" inflationary pressures because

1) They are suppose to target inflation 2 years out, as they can't do anything about tomorrows inflation
2) In 2004 they were raising rates when inflation was 1.1%, so if there is no bias (ie prefering CPI to be below target), then they should excercise the same thought process.

Anyway we shall see

Posted by kingofnowhere at January 18, 2008 07:46 AM