Friday, Dec 14, 2007

ECB in a quandry

BBC: Euro inflation hits six-year high

Higher oil and food prices have sent inflation in the eurozone to its highest level in more than six years.

Posted by holding out @ 02:04 PM (584 views) Add Comment

7 Comments

1. hpwatcher said...

No doubt...there will be those who think this strenghtens the case for more BOE rate cuts...

Friday, December 14, 2007 02:35PM Report Comment
 

2. Lloyd said...

The BBC has reported higher inflation in the US the Euro zone and even China. The UK does not get a mention are we immune to inflation.
Surely the Beeb would not be covering up anything would it? They also forgot to mention that the recent bail out by the central banks were designed to cover up Banks in the UK and US that are or about to be insolvent. Savers and llenders are being deceived on a grand scale. Be prepared to lose your shorts and shirts as banks go bust on the qt.

Friday, December 14, 2007 02:43PM Report Comment
 

3. holding out said...

The UK inflation stats come out this Monday - Most pundits are predicting a substantial rise that will leave the BoE in an interesting position.

Doubtless they will say when they next reduce IRs that they are looking at long term inflation - something then managed to lose sight of in 2005. I hope the next few months will prove there is more to running a successful economy than buying and selling houses and going shopping.

Friday, December 14, 2007 02:46PM Report Comment
 

4. david20040_0 said...

If the ECB raises then surely we will have to?

Friday, December 14, 2007 04:43PM Report Comment
 

5. paul said...

Why's that david? Mervyn King never gets swayed by anyone else's prudence.

Friday, December 14, 2007 07:08PM Report Comment
 

6. it_is_going_with_a_bang said...

"holding out said...
I hope the next few months will prove there is more to running a successful economy than buying and selling houses and going shopping.!"

I think what the next few years is going to show is that there isn't much of an economy left in UK PLC except buying and selling houses and going shopping. Which is of course why the BOE is so scared Sh*t of a housing crash.

The 'always on the up forever can't lose this ship won't ever sink' thinking behind the last few years is about to be exposed as ill-conceived and total rubbish. It's going to be a Titanic problem quite literally.

Friday, December 14, 2007 08:53PM Report Comment
 

7. David Smith's Sub Prime. . . said...

Well take a look at my economics page. You will see that lowering interest rates and pumping money into the economy does lower inflation....

Saturday, December 15, 2007 10:21AM Report Comment
 

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