Stagflation fears wide of mark, says MPC newcomer McCafferty

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A BANK of England policymaker has dismissed fears that Britain is entering a period of stagflation and insisted that the economy is now set for recovery.

Ian McCafferty, the newest member of the Monetary Policy Committee, hit back at commentators who have voiced concerns that the weakening pound could lead to rising costs, which will hurt British businesses and households.

Mr McCafferty told the Yorkshire Post: “The word ‘stagflation’ is difficult. I’m old enough to remember the 1970s and stagflation in those days was a different proposition from that which we face at the moment in the sense that, yes, we have very little growth... but inflation is still running at only 2.7 per cent.

 

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