Tuesday, Apr 24, 2007
BoE not worried about inflation
BBC: Bank sees 'sharp' inflation drop
Bank of England Governor Mervyn King said that there could be a "sharp" decline in the UK's rate of inflation over the next four to six months.
Posted by holding out @ 11:47 AM (148 views) Add Comment
25 Comments
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1. royston said...
"There could be a sharp fall in inflation in the next four to six months,"
True! It is equally that: There could be a sharp RISE in inflation in the next four to six months.
Could? - Meaningless!
2. confused76 said...
What a clown!
3. Andy said...
Maybe he meant to say, "There could be a sharp fall in house price inflation in the next four to six months".
Err on the side of optismism.
4. dohousescrashinthewoods said...
Spin machine at full tilt.
Trying to manage expectations, technically without making false statements.
5. Chiswickian said...
Does this mean they are just going to adjust the CPI basket again to remove anything that has any inflationary impact whatsoever, or does Mervyn really believe inflation will self-adjust down without any more fiddling of numbers ?
6. sovietuk said...
The MPC is a national embarassment and run by a total clown.
7. uncle tom said...
What Kate Barker said is much more telling:
Rapidly rising house prices are a major issue, but people with unsustainable debts are not -
- that's about as broad a hint as she could give that rates are going to go up - and up again
8. C'mon Correction said...
After rising rates another 0.5% - 0.25% May and then 0.25% June/July, of course inflation should be brought down in 6 months time. After that it'll probably rise again. Inflation is here to stay for the medium term (5-10 years), only a recession or HPC is going to change that.
9. george monsoon said...
Complete incompetence... " I wouldn't trust Mervyn to put my shopping trolly back in its place!" .My prediction...
Next MPC meeting... "a cautious .25% rise to cool inflation"
Following MPC meeting "that didn't do anything.. inflation is now at 3.5%?? better try another .25%"
Following MPC meeting.. "Oh dear..! inflation is still high and getting higher...and since Mervyn has been shamed from office and stepped down, we better save face and add .5% to the base rate..."
Next 12 months are going to be crunch time for the Europe and with all the real estate issues bouncing off the stock exchange today, it does not look good for investors. Now if only I had any money, I would be putting it into gold right now.!!
10. The Haunted said...
Not a clown, he doesn't deserve even that much. He, along with the rest of the MPC, is a clown's shoe. Hell, I'd like to earn their money to do 'No worse' than they have.
11. Surfgatinho said...
With talk like that we will be importing inflation big time after the pound crashes!
12. Shipbuilder said...
Is this site an undercover advert for gold?
13. Planetmervyn said...
Everything is rosy on planet mervyn. Rising oil prices coupled with lower inflation?? Even I can see that's just not going to happen. Oil prices are on the rise. Rising oil prices will translate to higher inflation as it did last year.
14. nearly30 said...
Great use of ambiguous words - Could and Determined - mean nothing - what about facts?
And BBC to tag this article with 'Bank sees 'sharp' inflation drop' is very irresponsible to say the least - it's simply not true - they haven't 'seen' anything of the sort - they are at best wishing it to be the case - they are certainly in no position to predict anything.
Can I have a job at the Bank - i'm great at making any old wild speculative remarks based on little or no facts for cash - even if i don't think them to be true.
In a word - Balls!
15. Harold said...
Oh but your all wrong - Merv KNOWS that they'll be a 'sharp' fall in inflation 'cos the BoE are hand-in-glove with the people who produce the RPI stats.
"Now listen here, we need a 'sharp' fall in inflation".
"Why?"
"Because I was under pressure from old Gordo to say so, and I caved in as usual".
"Right you are Sir - sharp fall coming right up".
16. harold said...
Oh but your all wrong - Merv KNOWS that they'll be a 'sharp' fall in inflation 'cos the BoE are hand-in-glove with the people who produce the RPI stats.
"Now listen here, we need a 'sharp' fall in inflation".
"Why?"
"Because I was under pressure from old Gordo to say so, and I caved in as usual".
"Right you are Sir - sharp fall coming right up".
17. waitingfor hpc said...
here here harold but will it work?
18. sovietuk said...
Unfortunately with Sterling Strong, the conmnen (The Chancellor of the Exchequer Gordon Brown and Mervyn King of the Bank of England) can pull all sorts of scams out of the hat.
19. george monsoon said...
So It will only come out in the wash when we are all buying loaves of bread with a barrow full of money!!!
20. nearly30 said...
Yes - harold I see your point - but why are we being 'conditioned' to accept a situation where 7.5% IRs are likely/probable?
Or is this a view from the media who can see through this Bullsh1t!?
21. enuii said...
"There could be a sharp fall in inflation in the next four to six months," if the ONS tweek their criteria correctly.
Ooh look "DVD recorders, satellite navigation (satnav) systems and digital (DAB) radios are among 20 items included for the first time in the 'shopping basket' the Office for National Statistics (ONS) uses to measure inflation."
They'll be going down in price then!
And, "The growing popularity of flat-panel TVs is illustrated by the inclusion of a second, smaller type in the basket, replacing portable TVs, while old-style deeper widescreen TVs drop out."
In fact all the items going in to the basket are items that will fall in Price!
Conclusion, Mervyn may well be right, ain't statistics great.
22. p. o. o. r said...
So I guess if the bank of England were to raise interest rates say by a whopping 1 or 2 percent (This used to happen) then yes I would agree, we could see a sharp drop in inflation - this sort of shock tactic might work - Not sure on what basis they truely believe there could be a drop - but then I am not a politician, MP, financial expert - but I would like to see on what basis they believe it could drop.
On another note I COULD win the jackpot on the lottery this week - if I do will I really give a XXXX! about inflation going up or down...
23. Lvmreader said...
3 words
Dorothy? Kansas? Bye-Bye?
24. Wilee said...
I like the phrase: 'determined to bring inflation back...WITHIN its 2% target'.
That's so ambiguous. The first thing that strikes you is the MPC have a precise low-ish target figure of 2% in mind that they're working towards, then reading in the content of "within" implies the remit is more to stay within the bounds, i.e. to get it below 3%.
Why not say "determined to bring inflation back TO its 2% target (with +/- 1% margin of error)' or 'determined to keep inflation WITHIN the 1% - 3% bounds' ?
25. lvmreader said...
Mervyn! Hope is a great thing isn't it Mervyn.
What's that phrase - "It's not who gets the most votes, it who counts the votes that matters".
It's not the actual inlfation, it is the rigged system you use to get the numbers you want.
Lies -- Damn Lies -- Statistics -- Forecasts from Mervyn King
Clown