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Reference:
2014/3987
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Question by:
Fiona Twycross
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Meeting date:
22 October 2014
The August edition of 'London's Economy Today', produced by GLA Economics, highlighted that "without a rise in the interest rate, CPI inflation is forecast to be above 2 per cent for most of the forecast period according to the Bank's (Bank of England) central projection". What do you perceive to be the implications for London's economy of CPI inflation returning to, and settling at, a position above the Bank of England's 2 per cent target over the medium term? Conversely, what do you foresee as the implications of an increase in interest rates?