Thursday, Jan 11, 2007
If Stirling Falls, Inflation will Rise
MoneyWeek: Why would anyone want to buy Sterling?
Today the MPC put interest rates up 0.25%. If stirling falls, imported goods will cost more. This is a very readable piece from MoneyWeek which suggests the fall of stirling is imminent. A good quote from the article is " ... the UK economy looks uncannily like late '80s Japan Inc today...only in miniature and minus the trade surplus. " Can we recall a previous time when the £'s fall was preceeded by a fall in the US $?
Posted by talking rot @ 02:26 PM (169 views) Add Comment
3 Comments
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1. Surfgatinho said...
Stirling, isn't that in Scotland. I hope it doesn't fall. Where would it fall to?
If Stirling does fall then I'm going to move my money to Dallas!!!
2. Sam said...
some choice cuts from the ft, (I don't think it warrants it's own posting, it's in the same vain as this one.)
"Sterling jumped by 1.1 per cent against the dollar to $1.9530 and by 0.5 per cent to £0.6660 against the euro."
"The Bank’s surprise move also wiped out early gains for the FTSE 100 index of leading stocks. Having traded 38 points higher before the Bank’s announcement, the FTSE 100 was down 16.2 points at 6,144.5 in early afternoon trade. Real estate, housebuilders and property-backed pub companies bore the brunt of the sell-off."
I think they go tired of telling people to ease up, and decided a warning is better than a stern telling off.
does this mean that every single article from VI's are gonna be negative about property prices, almost begging for long term rate hold, or reduction?
3. Buddleia said...
please .. "Sterling"