Thursday, May 22, 2008
Good to see they haven't forgotten why they exist
Telegraph: MPC minutes hint at splits as BoE steps up inflation crusade
(the MPC) regards a housing market slump and a possible recession as prices worth paying to keep inflation under control in the long term.
Posted by paul @ 01:18 PM (717 views) Add Comment
11 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. hpwatcher said...
The problem that some think the solution is to lower interest rates, when others think it is best to raise them.
Experts.....
2. Chief said...
the problem is that inflation can only be partially controlled by BoE rates... much of what is in the index comes from abroad and is influenced by global conditions. there is a tide, make that tsunami, of opinion forming that CPI and inflation targeting in general is the wrong target.... just as money supply was the wrong target before this one.
as for a housing slump, that is already here and it will get a little worse however (and i speak soley about london), there is still a lot of interest AND cash for the core areas.
3. Dark_horse said...
I still trust Mervyn with his merry band more than I'd trust Gordon and his little Darling...
4. d'oh said...
Recession and HPC instead of silly saver punishing inflation...as a saver with enough stashed away to survive for some time without work, this is music to my ears.
5. a saver said...
Agree with you d''oh. Just looking at the picture of the stupid MPC in the article makes me want to spit! We could have been spared a further couple of years of HPI if they hadn't put rates back down in 2005 for no good reason - and got a decent return on our savings....
Now our savings are earning well below the rate of inflation and yet we're still being taxed on interest.
BLANCHFLOWER OUT!!! BLANCHFLOWER OUT!!! BLANCHFLOWER OUT!!!
6. inbreda said...
You mean " Blanchflower out-side where he can be summarily kicked to within an inch of his yankee ass"??
7. Sneaker said...
"(the MPC) regards a housing market slump and a possible recession as prices worth paying to keep inflation under control in the long term."
This is just nonsense. If the MPC believes house price falls stop monetary inflation, then we really are in trouble. Monetary inflation is a problem across the world, and falling house prices in the UK (a small island in the North Atlantic) will have no effect on monetary growth for the other 99% of the world's population.
If the Central Banks really are serious about combating inflation, they better increase the reserve ratio requirements.
The monetary inflation that is commonly pegged on the CB's is not actually as a result of CB's printing money.
The fractional banking system does it. It's the nature of compounding. The system would naturally do it without any CB intervention.
8. paul said...
Chief,
Inflation can only be partly controlled by the BoE, but the money supply is exclusively controlled by the BoE, and look what they've been up to ...
9. Fed Up said...
I'll have a little bit of confidence in them if Blanchflower were to leave 'to spend more time with his family' or whatever.
10. planning4acrash said...
Anybody fancy a protest at the BOE, on interest rate setting day? HONESTLY!!!! I'm not joking. I was thinking of plaquards, reading, it could be a monthly event, followed of course by a couple of beers!
"RETURN US OUR MONEY WITH A 100% GOLD STANDARD, NO MORE FIDDLING WITH INTEREST RATES AND FIAT CURRENCY"
11. planning4acrash said...
But of course, it could be an individual protest, with each person voicing their own concern? Or will it just be me?!