Wednesday, Jan 24, 2007

No more interest rate rises?

Financial Times: King hints that rate rise cycle is near end

Mervyn trying to make out that he's still in control. Maybe he thinks the worst of the inflation rise is over. Read the small print though and another story emerges: "the Bank governor left open the possibility of its monetary policy committee raising rates again this spring."

Posted by rentslave @ 10:39 AM (160 views) Add Comment

2 Comments

1. inbreda said...

I think what he means is that Gordie has infiltrated the MPC with so many patsies that even if inflation hit 50% Merv has no control over the rest of the committe and still wont get a rate rise through

Wednesday, January 24, 2007 01:57PM Report Comment
 

2. paul said...

This bit makes me giggle:

"But the governor warned wage bargainers against seeking pay deals above the rate of inflation, saying they risked embarking on a "self-defeating process of higher wages offset by higher prices"."

So don't be tempted to mitigate rising costs by asking for more money to keep your current standard of living.

This is a little bit like saying "don't try to defend yourself if someone attacks you - they'll only have to use more force".

Nice try Merv. Keep swilling on the draff, we'll keep believing your propaganda.

Wednesday, January 24, 2007 10:25PM Report Comment
 

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