Published by Mark Smith-HalvorsenThe governor and the Monetary Policy Committee (MPC) of the Bank of England are doing the "right thing" in order to tackle inflation, chancellor George Osborne has argued.Speaking in an interview with Bloomberg yesterday, Mr Osborne said: "It's always a matter of concern when inflation is above target but the governor and the MPC are doing the right thing."Bank governor Mervyn King had to write to the chancellor again this month explaining why inflation remains more than one percentage point above target.Mr King has continued to promote the view that the high inflation levels are the result of temporary factors and will ease naturally over the medium-term.Continued upward inflationary pressure has led to the view that an interest rate rise will be needed sooner rather than later, although the slow growth rate has meant that no such move has so far been made, as GDP could suffer further if interest levels rise too much or too quickly.For more information on foreign exchange treasury services and risk management, visit our Corporate FX site