Wednesday, Jun 20, 2007
Strange how they can mess up our lives and get paid for it
FT.com: The Bank of England needs to set higher interest rates
The discussion at the Bank of England’s monetary policy committee must have been heated and, in the end, the wrong side won. This month’s 5-4 vote not to raise rates is even more notable because one of the dissenters was Mervyn King, the Bank’s governor. Though there are real divisions over what will happen to UK inflation, the data justify Mr King’s view that higher interest rates are needed, and sooner would be better than later
Posted by out of control speculators @ 11:30 PM (153 views) Add Comment
1 Comment
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1. Orwell said...
Wage growth remains under control, but the price of 2009 UK government bonds suggests that the market expects inflation of more than 3 per cent over the next couple of years. Surveys also suggest that the public expects inflation of more than 2 per cent, the Bank’s target, over the coming year.
The doves may be right, but all of the factors listed above create risks that inflation will not fall back to its target, or will not stay at its target in 2008 and 2009. The next time the MPC meets it should support the governor’s call for higher rates, and the case gets ever stronger that it should raise rates again after that, to 6 per cent before the end of this year.
SWERVE OLD BOY...
I'LL LET YOU INTO A SECRET...
EVEN THOUGH I KNOW YOU'LL BE PLAYING TENNIS ON THE BOE TENNIS COURTS , BUT IR'S HAVE TO GO UP ... UP ... UP ...
BEST ACT NOW MATEY BEFORE ITS TOO LATE.......