Wednesday, Aug 12, 2009
Inflation forecast
BoE: Bank of England Says Inflation May Miss Target in Slow Recovery
The Bank of England said inflation may miss its 2 percent target as the economy endures a ``slow'' recovery and the risk that banks will limit credit.
The inflation rate will drop further and economic growth may resume on an annual basis by 2010, according to forecasts released by the central bank today in London. Its main predictions are based on current plans to spend 175 billion pounds ($288 billion pounds) in U.K. debt markets to aid the economy and market expectations of interest-rate increases.
U.K. unemployment rose to the highest level in 14 years as companies cut job even as the recession showed signs of easing, government data showed today. Policy makers last week increased their bond-purchase plan by 50 billion pounds the slump proved deeper than they originally thought.
13 Comments
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1. 51ck-6-51x said...
The report & webcast:
http://www.bankofengland.co.uk/publications/inflationreport/irlatest.htm
2. Ndg said...
You can always trust Mervyn to tell the truth. He told me that QE was pioneered in the US and was a perfectly sensible and reasonable way to combat the greedy rat-fink bankers who have robbed us all blind and who will not stop until we are all dead.
3. refusetobuy said...
Is the BoE basically making a big FX call when stating this? That all (major UK) exchange rates will remain the same?
e.g. If the £ halves in value, then inflation will rise buy more than 2%, and vice versa.
4. mountain goat said...
A good break down of this in FT Alphaville explaining why it is still deflation they fear..
5. sold 2 rent 1 said...
51ck-6-51x,
Did you ask your biochem mate about my colloidal silver testing idea?
6. hpwatcher said...
I have absolutely no confidence in BOE........
7. 51ck-6-51x said...
S2R - ah, no, I had not... just sent him an email. Got an e-add I can contact you on when he responds?
8. uncle tom said...
Not sure I agree with the BOE's logic.
After several years of excessive M4 growth, one should not be too surprised if it now goes through a period of below inflation growth, or contraction. There is no fundamental reason why that has to be deflationary.
Trying to maintain M4 growth when it needs to consolidate, looks very dangerous..
9. inflation is eating my savings said...
s2r1= my chemistry is a little rusty, but the solubility product of silver chloride is very very low (or very very high, I can never remember which way around it is). As chloride is a physiological ion, and silver chloride is very very insoluble, I would think twice before popping it- you may find your arteries clogging up very rapidly. Silver also carries the general risks associated with heavy metals, although it is not that heavy. At homeopathic quantities it may be safe, but it won't do anything beyond a placebo effect.
10. sold 2 rent 1 said...
51ck-6-51x,
My email address is colloidalsilvertesting at googlemail dot com
11. 51ck-6-51x said...
Cool, ta. He is showing interest, at least for more details, so have given him your address and said to mention me.
12. sold 2 rent 1 said...
51ck-6-51x,
Thanks.
inflation is eating my savings,
silver chloride - what??????
colloidal silver is just made with silver electrodes in distilled water - no chlorine
13. 51ck-6-51x said...
s2r - you are right that colloidal silver SHOULD be non-ionic; but apparently it is not always so - therefore the observation may be a useful one in encouraging a check of source(s) [ i.e. quality of product ].