WASHINGTON (Reuters) – Falling energy prices will bring headline inflation closer to the BoE’s 2% target, but persistent underlying inflation will make it difficult for the BoE to set monetary policy this year, the Bank of England said. Monetary Policy Committee member Catherine Mann said on Wednesday. Pushing headline inflation down,” Mann said at the National Association for Business Economics conference.
But “core goods and services are going up … and that’s going to make our job very difficult” because The BoE’s 2% target is formally set in terms of headline inflation, she said, not a higher, more persistent core figure.
