These same factors, coupled with calmer financial markets, have allowed the Bank to lower the Bank Rate four times since the autumn (fully reversing last August’s increase), and to refocus attention on the medium-term objective of keeping inflation within the 1 to 3 per cent target range. Currently, inflation is just inside the bottom of the range.
Moreover, it has been stated that the increase in public spending, which has turned out to be effective amid the economic emergency, should be reconsidered in terms of composition in the long term.