New Bank of England Monetary Policy Committee (MPC) member Ian McCafferty believes that the central bank ought to keep an 'open mind' on the use of further non-standard measures, or remain 'open to the use of unorthodox means' to use his own words. Those remarks followed on a question posed to him regarding the relative merits of targeting nominal GDP.
On the question of the exchange rate of Sterling, he said that competitive devaluations can be 'self-defeating' and reminded listeners it could serve to stoke inflation, although it remains to be seen if the exchange rate is yet at the correct level or not. In that same vein, he went on to explain that he does not hold a strong view on whether it should rise or fall.
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