Wednesday, Jul 18, 2007
But which Mentalists voted against the rise? Blanchflower??
BBC: Bank voted 6-3 to increase rates
Policymakers at the Bank of England voted six to three to raise interest rates to 5.75% this month, the minutes of their latest meeting show.
Posted by george monsoon @ 10:43 AM (136 views) Add Comment
11 Comments
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1. sovietuk said...
"The Governor invited the Committee to vote on the proposition that Bank Rate should be
increased by 25 basis points to 5.75%. Six members of the Committee (the Governor, John Gieve,
Kate Barker, Tim Besley, Andrew Sentance and Paul Tucker) voted in favour of the proposition.
Rachel Lomax, Charles Bean and David Blanchflower voted against, preferring to maintain Bank Rate
at 5.5%."
2. george monsoon said...
Sorry, I didn't read the whole article before posting..
I might have guessed, Blanchflower would vote against it, I am sure this clown has a vested interest in property. does anyone have any information about Blanchflowers buisiness interests?
3. sovietuk said...
The above is direct from the minutes George
http://www.bankofengland.co.uk/publications/minutes/mpc/pdf/2007/mpc0707.pdf
They discuss houseprices there as well. ????????
4. George Monsoon said...
"Investment growth in the first quarter had been revised up and consumption growth had been
revised down a little. With household real post-tax income falling sharply, the estimated saving ratio
had fallen to 2.1%, its lowest level since 1960. The decline in income mostly reflected a fall in
employers’ special contributions into pension funds so the impact on consumption was likely to be
limited."
So they acknowledge that we have no disposable income with which to save, but attribute this to us padding out our pensions, now that company contributions have been all but withdrawn. Oh my god, who have we got running the country..!!
5. george monsoon said...
"Investment growth in the first quarter had been revised up and consumption growth had been
revised down a little. With household real post-tax income falling sharply, the estimated saving ratio
had fallen to 2.1%, its lowest level since 1960. The decline in income mostly reflected a fall in
employers’ special contributions into pension funds so the impact on consumption was likely to be
limited."
So they acknowledge that we have no disposable income with which to save, but attribute this to us padding out our pensions, now that company contributions have been all but withdrawn. Oh my god, who have we got running the country..!!
6. sovietuk said...
One is just trying to please her bosses boss and get the top job when it comes up. The state of the UK economy is incidentally neither here nor there.
One has another agenda
One is well Mister Bean and that says it all
7. royston said...
GM,
You have misunderstood their point about pensions. They are saying our incomes have gone down because our employers are putting less aside for our pensions, i.e. our salaries have actually been cut, but, because the cut was in our pension contributions, which most of us are not terribly aware of, we haven't really noticed.
8. george monsoon said...
Ahhh.. I blame the wording.. its nothing to do with my ability to understand..."your honour"...:O)
9. wage slave said...
I'm just looking forward to inflation shooting up in the autumn, along with the subsequent interest rate increases.
I think that this, along with the people coming off their fixed rates will provide enough of a shock to turn the market.
RPI should also shoot up and expose the CPI as the phoney measure of inflation (as far as the UK is concerned) that it is.
10. captain sensible said...
"Those voting against the rise argued that the impact of higher borrowing costs on consumers, particularly those saddled with large debts, needed to be taken into account."
So the BoE push rates towards the floor, thus encouraging excessive spending and increasing the debt mountain, and the spending fuels inflation. Now the BoE (minority) think that the debt crisis they allowed to spiral in the first place stops them raising rates to control the inflation their debt crisis contributed to. I'm not an economist......but isn't the natural outcome of this logic that inflation will spiral further out of control, interest rates will remain artificially low and those mad (or not if the ecomony is going to collapse in on itself anyway) enough to do so will continue to borrow and spend themselves into financial oblivion!?
11. george monsoon said...
captain sensible.. good argument, and one which will hold until someone who is making money out of this, stops making money.. i.e. the banks and the government. Then the plans will change.. hmm