At a global level, inflation was undershooting national inflation targets by almost 2 percentage points in January 2015.1  Chart 9: International inflation rates over time  Chart 8: Global CPI inflation Global PPP-weighted deviation of CPI inflation from target UK  Per cent  4 3  Higher than 5% Between 1% and 3% Below 0%  Between 3% and 5% Between 0% and 1%  Proportion of countries 100%  2 80%  1 0  60%  -1  40%  -2 2000  2003  2006  2009  2012  20%  -3 2015  0% 1961  Sources: Thomson Reuters Datastream, CEIC and Bank calculations. Notes: Global equates to approximately 70% of world PPP GDP; inflation targets fixed using 2014 targets and PPP-weighted according to share over time. 1  4  1971  1981  1991  2001  2011  Sources: Datastream and Bank calculations. Notes: Sample varies over time. Average sample sizes are: 30 countries between1960 and1980, 55 between 1980 and 2000 and 110 from 2000 onwards. See Carney (2015). BIS central bankers’ speeches  UK CPI inflation has closely followed global CPI trends since the crisis, with their correlation strikingly high at 0.8 – double its level pre-crisis. UK inflation currently stands at 0.3%, its lowest-ever recorded level. According to the MPC’s latest Inflation Report, it is more likely than not the UK will join those countries facing temporary deflation this year.
Christian Noyer: Current policy debate challenges – a euro area perspective Welcome address by Mr Christian Noyer, Governor of the Bank of France and Chairman of the Board of Directors of the Bank for International Settlements, at the 4th Bank of FranceDeutsche Bundesbank Macroeconomics and Finance Conference, Paris, 24 May 2013. *  *  *  Ladies and Gentlemen, dear colleagues, It is a great pleasure for me to speak in front of such a distinguished audience. As you might know, this is the fourth time that the Banque de France and the Deutsche Bundesbank have jointly organised a conference of this type. It is held every other year, alternately in Germany and in France. The fact that these two institutions sponsor an event of this nature sends a clear signal to the community of researchers: it illustrates the importance of research for the conduct of monetary policy. This is especially relevant at the current juncture as our understanding of the interactions between financial markets and the real economy remains incomplete. The work of outstanding quality presented during this conference could help influence the design and the conduct of monetary policy. The programme of this conference is very rich. It covers topical subjects that are of the utmost importance from the point of view of current policy debate. Let me take as an example the topic covered this morning: unconventional monetary policy, which have been my bread and butter as a member of the ECB Governing Council for the already six years.