Monday, Jan 28, 2008
Thoughts of a Financial Engineer
The Guardian: UK rate cut vital to avoid slump, says MPC member
The British economy risks following the US into a slowdown unless interest rates are cut sharply in the next few months, one of the Bank of England's monetary policy committee members warns today. In an interview with the Guardian, Professor David Blanchflower said the Bank needed to learn from the US federal reserve and take pre-emptive action to prevent growth from stalling.
Posted by quiet guy @ 12:06 AM (557 views) Add Comment
5 Comments
- If you do not have an admin password leave the password field blank.
- If you would like to request a password allowing you to add comments and blog news articles without needing each one approved manually, send an e-mail to the webmaster.
- Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
- Please note that any viewpoints published here as comments are user's views and not the views of HousePriceCrash.co.uk.
- Please adhere to the Guidelines
1. drewster said...
David Blanchflower *always* wants a rate cut. His voting record on the MPC plants him firmly in the rate-cutting camp. What's his agenda, to support his American buddies?
2. quiet guy said...
"he [Blanchflower] said "Britain is more dependent on the financial sector than is the case in the US. Also, the housing bubble is greater in the UK based on house price to earnings ratios."
He pointed to evidence that mortgage approvals - a key indicator of demand in the housing supply - had fallen by a third in the past year. While acknowledging that his MPC colleagues were right that high oil and food prices represented a threat of inflation, Blanchflower said the immediate priority was to stop the economy following the US into recession."
Blanchflower appears to implicitly equate the economy with the housing market. How crass. It's nive to hear an MPC member actually acknowledge the "housing bubble".
3. bystander said...
Doesn't he always????? - I wonder if he has a huge personal interest in devaluing the pound???? Just a thought.
4. Urbanbear said...
What a damned idiot, does he not realise that increased money supply causes inflation and that excessive credit and inflation is what caused this whole mess!
Better to stay as is and see an ordered decline than delay the inevitable and see a deeper decent later. It is just tough that Governments, business and people were greedy and wasteful, now they must face reality!
5. hpwatcher said...
The only word in David Blanchflower's vocab is ''CUT''