Thursday, Sep 20, 2007

$ and £ slip away! Inflation ahead.

Reuters: Sterling falls beyond 70 pence vs euro

Rate expectations have been turned around by upheaval in financial markets, weak UK house price data, and news mortgage lender Northern Rock has become the latest casualty of the global credit crunch triggered by defaults on U.S. mortgages.

Posted by alan @ 09:50 AM (328 views) Add Comment

4 Comments

1. Cheekie Charlie said...

And alot of our imports are from euroland ! But it will make our exports cheaper! Oh we don't do exports only financial products such as "investment vehicles.

Thursday, September 20, 2007 10:34AM Report Comment
 

2. planning4acrash said...

If our exports are cheaper, we make more cash, and this will put upward pressure on prices and wages. That combines with imported inflation to add more to the upside on inflation.

Thursday, September 20, 2007 01:07PM Report Comment
 

3. dbnazz1 said...

Cheekie Charlie...

If sterling falls against the Euro and we import from Europe, this means that our imports become more expensive and not cheaper.

Thursday, September 20, 2007 01:42PM Report Comment
 

4. dugmug said...

dbnazz1...Cheekie Charlie said our exports would be cheaper, not our imports, so he got it right. His points was that we will be importing inflation and unable to export our way to getting any benefit from the low £.

Thursday, September 20, 2007 03:31PM Report Comment
 

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