(Adds comments, background)
WARSAW Oct 14 Bank of England policymaker
Kristin Forbes said inflation in Britain could "sharply"
overshoot the BoE's 2 percent target, partly due to measures
announced by the central bank in August to offset the impact of
the Brexit vote.
"All in all, partly due to this package, partly due to the
underlying momentum in the economy, partly due to other changes
in the economy, it does look like the days of inflation bouncing
around zero are long gone," Forbes said.
"Inflation is already picking up. It will pick up even
faster and we are likely to overshoot our 2 percent inflation
target perhaps sharply in the next two years," she told a
conference organised by Poland's central bank.
Forbes, a former adviser to the U.S. White House during the
presidency of George W. Bush, backed the BoE's decision to cut
interest rates to a new historic low of 0.25 percent in August
but was in a minority voting against the expansion of its
The BoE signalled in September that it might cut rates again
on Nov. 3 if the outlook for the economy remained largely in
line with its assessment in August.
But since then, data has shown the economy withstood the
initial shock of the Brexit vote better than first thought and
Britain's sterling currency has fallen further, adding to
Forbes said the degree to which the fall in sterling is
passed through to prices would be critical for determining
(Reporting by Marcin Geottig in Warsaw, writing by William
Schomberg in London Editing by Jeremy Gaunt)