Talk of inflation threat during post-Covid rebound dismissed by Bank of England

London, 24/2: Bank of England officials put a full stop to the  suggestions that the economy is about to suffer from higher inflation anytime soon as it struggles with the fallout of the coronavirus pandemic.

Answering questions from lawmakers on Wednesday, policy makers said data monitored by the central bank don’t show evidence of inflation overshooting its 2% target.

A surge in household savings under lockdown has fueled speculation of a rapid increase in consumer demand as the government starts to unwind virus restrictions next month.

“I don’t see any evidence across the piece that inflation expectations have moved to levels that would worry us in terms of the inflation target,” Deputy Governor Ben Broadbent said.