October 26, 2005 | posted by Michael Baxter in Uncategorized |

With all the talk about retail malaise, another group of commentators have been speculating that we could be in for an increase in the rate of interest soon. But Bank of England governor, Mervyn King, appeared to dampen speculation yesterday, when he told a House of Lords committee that “a number of people in the last six months have been talking as if the MPC were targeting total demand or, even more oddly, targeting retail sales and consumer spending. We are not. We are trying to target inflation. We have an inflation target.”