BOE economist Dale: Inflation targeting needs tweaks

Inflation targeting should be retained but enhanced, says Bank of England economist Dale. As it is currently operated, inflation targeting is insufficient. Robotic inflation targets proved very poor monetary policy mechanism a year ago as inflation ramped higher and economic growth collapsed simulateously. Most central banks take liberties with their inflation targets given their “medium-term” focuses, so it will be interesting to see if central bankers can come up with any more tangible monetary methods other than the seat-of-the-pants methods used today. Cable trades at 1.6390 after sliding as low as 1.6332 in early US trade. 1.6420 offers are seen on rebounds near-term with small stops eyed at 1.6425/30.

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