Wednesday, Aug 13, 2008
BoE Inflation Report
BBC: Bank to signal inflation pick-up
The Bank of England is likely to provide evidence of tougher times ahead for the economy when it publishes its latest quarterly report on inflation.
The report comes after the UK's annual rate of inflation rose to 4.4% in July, its highest level since 1997.
Analysts said the Bank is likely to predict that inflation could touch 5% before falling back, leaving no scope for an early cut in interest rates.
Posted by jason @ 09:57 AM (648 views) Add Comment
6 Comments
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1. mark wadsworth said...
Yeah right.
The MPC announced months ago that interest rate cuts were unlikely until 2010 ... i.e. just before the next GE. Prices have been increasing faster than wages (and certainly faster than pensions) for at least a year, possibly longer. Having hushed this up for a while, The Gummint has now gone over to Plan B - soften up the general public for the fact that interest rates are staying up to enable them to make a couple of belated cuts in early 2010. With a bit of luck, perhaps house prices will have bottomed out by then?
2. Eternal Sceptic said...
a couple of belated cuts in early 2010? If the economy is in any state to enable that to occur, I think we can all breathe a collective sigh of relief.
3. doom&gloom said...
The article title, "Bank warns of flat growth ahead", says it all. Just like house prices would 'level off and stay flat for a few years'. Flat growth is against the laws of the universe! It NEVER happens - it's either up or down. The economy is due to fall off a cliff very shortly. You have now been warned by the Bank of England. Be prepared!!
4. crash bandicoot said...
As if by magic the CPI went through a surprising fall right about the time that the aborted general election would have been called. The poor old ONS have been uncomfortably watching their figures appear more and more irrelevant each month. It seems that they have finally given up hope of real inflation moving down to their value and so have started adjusting their figures to what we all know to be true. This is going to shock some people once it gets anywhere near to reality.
5. plato said...
Maybe the BoE watched mountain goat's video!
6. nooneo said...
Mervyn King "Waffle, blah, waffle, It'll all be over by Christmas...Waffle, blah, waffle.... Inflation will peak at 5%....Waffle, blah, waffle....No need to do anything...Waffle, blah, waffle...Nothing to see here, move along now, nothing to see here...."
Yet only 3 months ago Merv said - "Inflation will peak at 3%..."
Yet only 6 months ago Merv said - "Sound Fundentals, low inflation, low interest rates......"
Yet only 9 months ago Merv said - "There will not be a house price crash, but a slight devaluation then leveling out....
Yet only 12 months ago Merv said - "House prices will increase by 5-10% in 2008...."
Can we all see the pattern emerging here?