Inflation target: Difference between revisions
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:If we miss the inflation target by more than 1 percentage point either side of the target, we must tell the Government why." | :If we miss the inflation target by more than 1 percentage point either side of the target, we must tell the Government why." | ||
:''Bank of England, June 2020'' | :''Bank of England, June 2020''. | ||
Revision as of 17:00, 22 January 2022
1. UK - Bank of England.
- "To keep inflation low and stable, the Government sets us an inflation target of 2%. This helps everyone plan for the future.
- If inflation is too high or it moves around a lot, it’s hard for businesses to set the right prices and for people to plan their spending.
- But if inflation is too low, or negative, then some people may put off spending because they expect prices to fall. Although lower prices sounds like a good thing, if everybody reduced their spending then companies could fail and people might lose their jobs.
- If we miss the inflation target by more than 1 percentage point either side of the target, we must tell the Government why."
- Bank of England, June 2020.
2.
Similar goals and measures in other jurisdictions.
See also
- Bank of England
- Financial stability
- Inflation
- Monetary policy
- Monetary Policy Committee
- Monetary Policy Report
- Official Bank Rate