The degree of anchoring of inflation expectations is a key determinant of outcomes in all modern macroeconomic models, inspired by the experience of the 1970s. For monetary policy-making today, however, the sensitivity and relevance of measured inflation expectations is more questionable. The British economy, beset by a series of significant shocks in 2008–11, while operating an inflation targeting regime, provides a case with which to explore these issues. Five conclusions emerge given current monetary and economic structures: reliable forecasts for domestically generated inflation can be made taking inflation expectations as anchored; movements in measured short-term inflation expectations are uninformative for forecasts; financial markets can distinguish between increased economic uncertainty and uncertainty about monetary credibility; real wages do not automatically respond to rises in household inflation expectations; monetary policy should be set in accord with the best medium-term forecast for inflation without adjustment for inflation expectations in and of themselves.