Wednesday, Jan 16, 2008
What ya gonna do BoE?
The Business: Inflation puts urgent rate cut in doubt
Inflation is above the Bank of England's target for the third month in a row, raising doubts that it will cut interest rates as fast as the market expects this year.
The news helped the pound to rebound after its recent run of declines, with sterling rising 1½ cents to $1.9714 against the dollar, but failed to lift the FTSE 100 index which tumbled 190 points to 6025.6.
Posted by submedia @ 01:50 PM (851 views) Add Comment
8 Comments
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1. Landedgentry said...
RAISE RATE RAISE RATES!
I don't wanna live in another weimar republic
2. cyril said...
Apparently rises in price of food, energy, transport etc. has been offset by falls in the price of kitchens and sofas.
3. tyrellcorporation said...
Yeah, like I buy a new sofa every 10 years but bread and milk gets bought every two days. I would imagine they've now heavily skewed inflation data towards home furnishings and white goods which will be hammered this year by a general slowdown. Cheeky blighters!
4. jack c said...
Ring ring,
BOE to PM - we know u gave us independence but we are seeking firm guidance, as tough decisions need to be made in turbulent financial times.
PM to BOE - well the housing market is being talked down by those doom and gloom merchants on that b****rd HPC site and the retailers are squealing like pigs so I think u should cut by 0.5% as early as February - but don’t tell anyone I said so.
BOE to PM – We must remind you our main remit is to focus on inflation, which is potentially running out of control – there is a valid argument that rates should rise to curb inflation and protect Sterling.
PM to BOE – “if in doubt do nowt” (same principle applies to Northern Rock) – lets keep rates on hold and just see what happens !.
Call ends
5. hpwatcher said...
''lets keep rates on hold and just see what happens !.''
I'm quite happy with those ppl not doing anything......it's when that start doing things; that's when the trouble starts.
6. bystander said...
hpwatcher - "it's when that start doing things; that's when the trouble starts."
Couldn't agree more. Leave well alone BoE and get inflation under control, let house prices come down to a sensible level, allow the financial markets to clear out the trash and start again, then yippee, as stronger economy for the UK.
7. eyeoftheweasel said...
I agree Bystander. I suspect that councils will definitely start charging for refuse collection though with the amount of trash that needs to be cleared out.
8. geed said...
Hpwatcher - hehehe
Cyril & Tyrell - Try Diamond Solitaire rings, I sh!t you not. (Are you twins?)