LONDON (MktNews) - All members of the MPC take the current inflation undershoot seriously, Monetary Policy Committee member DeAnne Julius said Tuesday.
"All of us (on the MPC) take it quite seriously. We are below target and have been for some time," Julius said after a speech delivered at the British Chambers of Commerce conference in London.
Julius went on to say in a question-and-answer session that the current forces on inflation are many, but added that "the single biggest question facing us now" is the US economy.
Asked about the arguments against cutting rates in March, Julius replied, "The arguments on the other side revolve essentially around the labour market. The labour market is very tight. Unemployment is very low." She also added that the MPC has to watch the fiscal position and the state of the labour market.
On inflation, she said that the strong pound cannot be the only reason for an inflation undershoot over the last couple of years because then output would have been lower too.
Asked if she would like to continue on the MPC, she replied, "I will disappoint you. That's between me and the Chancellor."
Julius's first term as a MPC member expires on May 31. Julius could remain on the MPC for another term if Chancellor of the Exchequer Gordon Brown agrees. However, no member as yet has agreed to sit for a second term.