Wednesday, Jan 23, 2008
A firm hold then
BBC: Bank votes 8-1 for hold in rates
Any guesses who voted for a cut?
Posted by geed @ 09:58 AM (919 views) Add Comment
13 Comments
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1. Little Professor said...
Very surprising - I thought it would have been much more finely balanced than that. Plenty of people were predicting a cut, so this firm hold is reassuring for us bears.
No surprise that our old friend Danny Blanchflower voted for a cut. Full minutes here:
http://www.bankofengland.co.uk/publications/minutes/mpc/pdf/2008/mpc0801.pdf
2. su said...
David Blanchflower
3. Little Professor said...
4. little professor said...
Full minutes here:
http://www.bankofengland.co.uk/publications/minutes/mpc/pdf/2008/mpc0801.pdf
Danny voted for a cut.
5. geed said...
Blanchflower! pr!ck! thanks LP.
6. confused76 said...
"The financial sector was particularly hit by the slowdown in growth in the last quarter, expanding by just 0.4% - the slowest rate of growth for more than four years - as it was hit by the global credit squeeze.
"We stand by our view that rates will come down again next month, but barring a sudden deterioration in the growth outlook the MPC is unlikely to act aggressively," said Philip Shaw, chief economist at Investec.
"The fact that GDP growth in the fourth quarter held up relatively well supports that view."
We are just seeing the very very early beginning of the crisis of the financial sector. Expect GDP growth to slow down and even go in reverse later in 2008. That will prompt BoE to cut aggressively.
7. little professor said...
Blanchflower's reasoning for voting for a cut:
One member judged that the outlook for UK-weighted global demand had materially worsened,
especially in the United States. Consequently, the risk of a sharp and persistent slowdown in activity had also increased.
There was little likelihood that wage bargainers would seek higher awards if CPI inflation increased temporarily
judging by the recent behaviour of pay. In that member’s view, a further cut was warranted and would
be consistent with financial market expectations.
Yes, CPI's raging, but please don't increase my wages.
8. Brightfox said...
This pillock should be removed from the BOE, he clearly has a poor grasp of economics....Mr. Brown should surely be embarrased by him! However i doubt this very much
9. Albertini Albertino said...
About time someone did some analysis on these voting figures, then. Since Doveid joined the MPC in June 2006, he's voted twenty times - once for a rise (the famous 9-0 of May 2007). In those twenty occasions, there have been 44 votes for a rate-rise, so he's running at less than half-'average'.
He's also been in a 1-8 minority wanting a cut three times. Do we question his independence or his intelligence first?
10. handle_it said...
What is the real rate of inflation ?
11. hpwatcher said...
What those folks at BoE think or do, is now of absolutely no consequence......
I bet Brown now wishes he had called that election.....
12. it_is_going_with_a_bang said...
Brown will have his ar5e kicked straight out of no.10.
Not a moment too soon. Never could stand the man from day 1 of No.11.
13. David Smith's Sub Prime. . . said...
Blanchflower is being paid by the housing and property makeover 'industry'.