Adam Posen, external member of the Monetary Policy Committee at the Bank of England, recently said inflation would tumble to 1.5% by the middle of next year.

This will be because of George Osborne’s austerity drive and the underlying weakness of the economy stifle consumer spending, according to the leading dove of the Bank of England.

From Guardian.co.uk:

In an interview with the Guardian, Adam Posen admitted he had sleepless nights over his call for more money to be pumped into the economy and said he would not seek re-election to Threadneedle Street’s monetary policy committee if his view turned out to be wrong.

Posen said: “If I have made the wrong call, not only will I switch my vote, I would not pursue a second term. They should have somebody who gets it right and not me. I am accountable for my performance. I’m holding my nerve because it is the right thing to do.”

The American academic said he would be profoundly affected if it was proved that he had erred in voting repeatedly for bank rate to be pegged at 0.5% and for more money to be pumped into the economy through quantitative easing. “It would not just be terrible that I had messed up for other people but it is also my fundamental world view that I have been testing.

“I would take it deeply and personally, which is why I have laid awake at night thinking about it.”

Posen also said the so-called “core inflation” that strips out the effects of fuel, food costs, and taxes such as VAT, did not suggest that the economy was overheating.