Tuesday, Dec 16, 2008
Mervyn gives up the pretence of trying to meet the inflation target - Quite incredible!
Telegraph: Mervyn King warns on inflation
"In a letter to Alistair Darling, Mr King said that the Bank is effectively suspending its efforts to meet the 2pc CPI target until 2011 as a combination of the recession and the temporary VAT cut make inflation far more volatile than usual. The admission that the Bank will not aim to meet the target over the next year and a half will cause some consternation in the City, where inflation stability is viewed as one of the most important precepts of the central bank." And here was I thinking the inflation target has been missed for well over a year - hardly a 'temporary disturbance'!!! What a fraudster. We're in this mess BECAUSE he failed to more accurately track inflation.
Posted by tyrellcorporation @ 10:51 PM (541 views) Add Comment
3 Comments
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1. sovietuk said...
It says on the Bank of England Website "A principal objective of any central bank is to safeguard the value of the currency in terms of what it will purchase".
Seems a bit odd given the events of the last few months.
2. bellwether said...
can we raise the horizon a little? Every country across the world is slashing interest rates to zero - even the ECB will get there in the end. Our currency is doing badly because it was over bought against the usd and because of a temporary and largely inaccuate perception that our prospects are much worse than the Euro, lI say largely inaccurate because both are fcked.
3. str 2007 said...
This reminds me of a Young Ones sketch where Vivian (Very Metal Punk), who's job it was to look after the plants and goldfish in the student household made Neil (The Hippy) cook them with sausages - it was a tuesday.
The phrase from Vivian was - I've discarded my responsibilities, now you discard yours.
It's as though 1 meeting a month plus writing a letter every month was just to daunting a task for our Merv. so he came up with a cunning plan to absolve himself of letter writing.
Apologies for those of you who have no clue about the Young Ones , couldn't find the sausage sketch.