The United Kingdom uses ________ as its nominal anchor.

Question

Quizplus · Accepted Answer

The United Kingdom uses inflation target as its nominal anchor. The Bank of England has been given a remit by the government to set an inflation target of 2% +/- 1% for the Consumer Price Index (CPI) measure, and has been using this target as its nominal anchor since 1992. This means that the Bank of England adjusts its policy tools, such as interest rates, to achieve this inflation target.

The United Kingdom Uses ________ as Its Nominal Anchor