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Dear Mervyn – the real letter
If the Bank of England fails to keep to within 1% of the Government’s 2% inflation target, the Governor is forced to write a letter to the Chancellor every three months with an explanation. Since 2007 there have been 14 of these supposed apologies, the last nine in consecutive quarters. The Governor has been writing them so long, his notepaper has changed along the way, as has the Chancellors.
In response Messrs. Brown (felt pen!), Darling and Osborne have usually said something like: “I’m sure you’ve done your best, my dear chap, and I’m reassured by your promise that inflation is just about to fall. Keep up the good work.” The latest exchange has just been published. But we’ve come across another letter from the Chancellor to Mervyn King that doesn’t appear to be on the Treasury or Bank of England website. (Click to enlarge it)