Thursday, Dec 20, 2007
Substantial loosening in BOE policy
Times: MPC verdict is a seven or eight on the Richter scale
The quarter-point cut in the base rate earlier this month was an emphatic signal that policymakers had started to see the world in a different light. Minutes of the Bank of England's Monetary Policy Committee, published yesterday, underline how profound a change in thinking there has been. For a start, the decision was unanimous. Not a single hawk was arguing for more time. More significant still was the tone of the minutes, which read more doveishly than for many years.
Posted by jack c @ 10:47 AM (428 views) Add Comment
3 Comments
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1. paul said...
What the central bankers like Merv the Swerv still haven't quite realised is that the current crisis is a crisis of solvency, not liquidity. Liquidity can be generated by printing more money. Generating solvency is much much more difficult.
If Mervyn thinks he can create solvency by increasing liqduidity (the very thing that brought about the solvency problem), then unfortunately he is not as smart as he thinks.
2. Cstanhope707 said...
Good point Paul in fact the Interest Rates were near to 0% in Japan when their Market dived!!
PS. Did you see the mythical inflation figure holding at 2.1% the fact is that no one believes this figure any more....
3. Cstanhope707 said...
Is it me or do people actually think Recessions are now a thing of the past and Crash Gordon ahs fixed it all... I have lived and worked through 3 one very nasty one in 2001 and I am still here....