LONDON (dpa-AFX) - Britons' long-term inflation expectations are well-anchored to the target, Bank of England chief Economist Spencer Dale said Monday.
In the foreword to the bank's latest Quarterly Bulletin, Dale wrote that the signals regarding short and medium-term inflation expectations are more mixed, but there are few signs that they have become significantly de-anchored.
According to the economist, though the short-term inflation expectations remained elevated, there is little evidence that they are affecting wage and price-setting behavior.
However, assessing the risk to inflation from inflation expectations remained a key concern for the monetary policy committee as this can be done only 'imperfectly' due to significant uncertainties surrounding different indicators.
He observed that the recent movements in UK inflation expectations have been more mixed, moving both upwards and downwards, reflecting volatility in inflation and in measures of inflation. expectations.
The Quarterly Bulletin says that the extent of public satisfaction with the bank has fallen since mid-2010. The bulletin also says that the amount of housing equity withdrawal has swung from positive to negative over the past few years.
According to the bank, the fall in the number of housing transactions is likely to have been a key driver of the fall in equity withdrawal since the financial crisis. However, it said there is little sign that households are making an active effort to pay down debt more quickly than in the past.
Copyright RTT News/dpa-AFX
© 2011 AFX News
