Wednesday, Sep 17, 2008
David Blanchflower opposed keeping rates on hold at 5%, voting for a half point cut
BBC: Bank voted 8-1 to hold UK rates
Bank of England policymakers voted 8-1 in favour of the status quo at their interest rate-setting meeting earlier this month. Minutes of the meeting earlier in September show only David Blanchflower opposed keeping rates on hold at 5%, voting for a half point cut. The Monetary Policy Committee (MPC) considered both raising and cutting rates before deciding to hold rates. The MPC had not changed its outlook on inflation, which rose again in August.
Posted by jack c @ 10:01 AM (754 views) Add Comment
8 Comments
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1. peter_2008 said...
David Blanchflower again... and 50 base point?
That will make Pound weaker and push up inflation of imports. Someone may say that helps exports. What? Do we export anything anymore in this country? We don't have car manufacturers anymore, neither natural resources, except the pity North Sea; and nobody wants to buy British foods.
What we have plenty of in this country to export are - EAs, bankers and property developers, BTL landlords, politicians and their tax stealing brats. Let export 5 of them for each hard working poles we get. That will get us out of the looming recession!
2. beartil2010 said...
Blanchflower: 'Come on lads! Stimulate the economy by reducing rates, you need to, you're in a recession! I mean, sorry, give cheap money to the banks and let them rebuild their margins on the taxpayers back as they're all insolvent. Stop the deflation and try to pump extra money in to inflate the money supply. And meantime cause massive price inflation by reducing the value of the pound.'
Mervyn: 'Blanchflower! I've told you before! Go and stand in the corner.'
3. peter_2008 said...
Rate cuts will only work in countries, which’s economy rely on exports and also have huge domestic demand, like Japan, China, Germany and USA, possibly France (agriculture) and Australia (natural resources), too. You can either reduce the base rate; or like China, artificially undervalue Chinese Yuan to keep exports going.
Countries like UK which relies on offering second rate unneeded services in exchange for imported cheap foods and resources, guess what happens when you have cheap money? Well, people buy properties!
The historical average base rate is about 7% - 8% for the last 50 years. The lowest was 3.5% in 2003. That was essentially, what fuelled the property market. We will be committing suicide if base rate is reduced again.
4. wiltshire said...
I say we export 1/9th of the MPC back to the USA on a one way ticket.
5. timmy t said...
Reducing rates would be like giving another hit to someone coming off drugs, just to stop them shaking. We need to sort out the root cause of the problem rather than trying to remove the symptoms. It will be painful, but this is a process we need to go through. It seems that the majority of the population, whether they like it or not, now accept this to be true, so why is someone who doesn't grasp such a simple concept in this position?
6. Zippys said...
LIBOR rate rocketing, the BoE rate decision doesn't matter anymore!
7. handle_it said...
The question is why is he in such a position to start with ?
8. Nazb said...
I am wondering who sponsor's David Blanchflower.?
Is this man real?
What the hell is he doing on a panel of experts appointed to control inflation by always incorrectly voting against the majority?
It is time he was removed or reminded the responsibility of his position.