signs UK ‘behind the curve’ on rate rises as Bank of England loses focus on inflation

In her valedictory speech at the London Business School, Professor Forbes suggested the greater focus on risks had “created an asymmetry in our monetary policy responses”.

She said: “Over my term on the MPC, we have been much quicker to adjust monetary policy in response to downside risks than upside.”

The professor noted that the MPC adopted its four-pronged policy package amid concerns that “the economy might weaken substantially – not waiting for hard data”.

She added: “Then the economy outperformed for much of a year, yet today a majority of the Committee still does not support a recalibration of this stimulus.”

While she said a focus on downside risks and keeping rates on hold to ward off deflation threat “made sense”, Professor Forbes added that these risks had “receded”.

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