Thursday, Sep 13, 2007
Inflation under control - NOT
Forbes.com: UK inflation expectations for coming yr 2.7 pct in August, same as in May - BoE
Some clowns on bloomberg this morning were actually saying they reckoned the BoE will lower interest rates, but yep you guessed it, they were people from investment banks who now having had it from the horses mouth that the BoE wont be doing them any favours with regard to injecting liquidity at cheap overnight rates, have decided that the next best thing would be to claim that the BoE's next move on base rates will be downwards and that if they shout it for long enough it will happen..........well looking at this report, plus the fact that wheat has gone ballistic, food is rising, no more cuts in engery prices are expected, and $85 for a barrell of oil is expected, I think I know which way rates are going to go....UP UP UP.
Posted by mr cobblepot @ 11:02 AM (590 views) Add Comment
7 Comments
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1. uncle chris said...
Yes, but you forget that the Office of Notional Statistics will "arrange" whatever CPI is convenient for Crash Gordon. We all know it bares no relation to the actual rise in the cost of living - yet more lies .... whatever happened to cleaing up politics GB ???
2. C'mon Correction said...
I'm still sticking with 6.25% base rates by Feb/Mar '08. Only thing to prevent this is either the start of a HPC i.e. negative inflation of around 1-2% a month or a recession.
3. dohousescrashinthewoods said...
I think that was spin
4. Orwell said...
Now you lot!
Do not denigrate our Guru who says that inflation is categorically 1.9% and any time one tries to challenge him he stops them blogging.
Oh and from the same wisdom infused melifluous higher authority, there is no sub prime problem and there will be no HPC. Ok!
5. dohousescrashinthewoods said...
Anyway, 's not like we're stoopid, we know wot's goin' on wif t' gas bill.
Then bankers can say wot they like, but we are the angry mob and we read the Daily Mail every day.
6. Alan said...
The Fed is just days away from a large rate cut.
I think Mervyn will be forced to cut rates in response or force a painful exchange rate to the dollar.
There are lots of good reasons why rates should actually rise, not fall. I don't think the Fed will take any notice of them. There are far too many (short termist) voters saying CUT, CUT.
7. uncle tom said...
The Fed has a less defined remit than the BOE - they may well make a cut, but I'm not expecting anything dramatic, as it seems that Bernanke is not very enthusiastic about the idea.
The BOE is firmly inflation targeted at present, although past comments by our Merv suggest that he would prefer a money supply target instead - with the implication that rates should be higher..
The present upset isn't making inflation go away, so there is no case for the BOE making a cut. However, they may well defer any consideration of a hike until the current dramas are played out.