Monday, May 28, 2007
MPC defending their actions?
Reuters: Blanchflower says another rate rise not certain
"I felt it was important to let people know that we were on the case and that inflation expectations have to remain anchored."
At last
Posted by speculatorone @ 01:06 PM (148 views) Add Comment
13 Comments
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1. shipbuilder said...
I don't see anything new here from Blanchflower - he's effectively saying that he will vote for a cut as soon as he can.
2. Becky said...
Blanchflower was supporting a cut in interest rates just before inflation moved into "letter writing" territory. The man is obviously incompetent and should be removed from his position.
3. Pr said...
Is he a property developer or something? What is his vested interest?
4. japanese uncle said...
This man is not even British, let alone unelected, with no representation of the interest of the general public whatsoever. What the heck is this man doing in an institution whose role is the most crucial at the moment for the financial welfare of all the residents in UK? Whose interest does he really represent? On whose payroll?
5. confused76 said...
"But if the data aren't supportive and we see the labour market is weak, there's an effect on consumption, and the housing market is slow, then we'll act," he added.
Whats the problem with this joker? He should stare at inflation ONLY!!!!
6. royston said...
Remember, Blanchflower and 5 other members of the 9-member MPC are directly appointed by Gordon Brown. The MPC is about as independent as a ventriloquist's dummy. Blanchflower et al. are Brown's finger puppets.
7. Jolo said...
The only reason this guy voted for a rate rise last time was because he would or should have lost his job otherwise. Given that CPI was 3.1% at the time. He certainly, for whatever reason isn't looking at the bigger picture.
8. paul said...
Yet again, we see MPC members stepping outside their remit.
Sooner or later, some serious questions need to be asked about vested interests of the MPC members.
"I don't think the MPC has backed itself into a corner," said Blanchflower.
In other words, the MPC has backed itself into a corner.
"We cannot forecast from meeting to meeting what the MPC's going to do."
You collectively ARE the MPC. Are you perhaps trying to say "We don't know what the MPC's doing"?
9. Pelethar said...
"But if the data aren't supportive and we see the labour market is weak, there's an effect on consumption, and the housing market is slow, then we'll act,"
This statement is totally deplorable. The MPC's job is to keep inflation between 1% and 2%. That was their reason for not intervening during the HP boom five or six years ago - "Not our job, inflation is on track". Fair enough, but the same has to apply when things are moving in the other direction. To imply that the UK's central bankers would even consider cutting rates in the face of high inflation to stimulate the housing market is scandalous. This guy should be drummed out of his job.
10. confused76 said...
JU,
he is British, and he is a tough cookie. Probably second only to Mr. Brown as stubbordness in the face of evidence telling otherwise.
11. This comment has been removed as it was found to be in breach of our Blog Policies.
12. Pr said...
Blanchflower really doesn't have as much control as he's leading us to think or that he thinks he has, at least in the long term, because, with inflation at the moment a global problem, ignoring it will result in a bigger crash later from stoking of the fires. That doesn't bear thinking of tho because low rates, like high rates, take a couple of years to work their way through the system. Do we have the appetite for another 2yrs of boom, and an even bigger crash after? If Blanchflower has is way, it will be to pave the way for an early Brown general election, after which interests rates will go up and a crash will be allowed to occur.
13. tony marshall said...
My e-mail to enquiries@bankofengland.co.uk:-
Dear Sirs
I was concerned the read this report on Reuters: http://uk.reuters.com/article/businessNews/idUKL2710233020070528?pageNumber=2 In particular Mr Blanchflower’s comment reported as follows:-
“Blanchflower made clear in the interview he would place less weight than some of his fellow MPC members on what firms said they were planning to do with prices.” People say they are going to increase prices, but the question is whether they actually can,"
Do I understand from this that the MPC now operates a policy of ‘wait and see’? I had understood that it was the MPC’s job to read the signs and act in advance to control inflation – any fool can wait until it stares them in the face before acting. I would be interested to know if Mr Blanchflower was applying Bank of England policy in adopting this approach or whether it is his own personal approach to ‘planning’.
Yours faithfully