Bank of England Governor Mervyn King may soon be writing to the Chancellor to explain why inflation is undershooting
we are concerned that in an effort to establish credibility the MPG may have biased policy towards undershooting
3 percent from the previous month, undershooting
market consensus, brokers said.
The MPC said the scale of the purchases needs to target CPI as it still see it at risk for undershooting
their 2% target.
In the November Inflation Report, the committee's projection for inflation showed a substantial risk of undershooting
the 2% CPI inflation target in the medium term.
5% to 3% last week - their lowest level since 1955-because of a "substantial risk" of undershooting
its 2% inflation target as recession looms.
Sushil Wadhwani, whose three-year term on the Bank's monetary policy committee (MPC) ends today, said he feared the Bank may come under attack for undershooting
the Government's inflation target of 2.
The cross-party Commons Treasury Select Committee also recently expressed concern that, in its efforts to establish its anti-inflation credentials, the MPC may have 'biased policy towards undershooting
John O'Sullivan, economist with Greenwich NatWest, said there was now a greater risk of inflation undershooting
, rather than overshooting, the Government's target level.
Electrolux saw its pretax profit more than halve on the year to SEK696m in April-June 2011, undershooting
a SEK853m market consensus.
The Commons Treasury Committee said in a report that it was 'concerned that in an effort to establish credibility the MPC may have biased policy towards undershooting
the inflation target'.