Friday, Jan 22, 2010
MPC attack on savers continues
FT Alphaville Blog: A still slacking MPC
The minutes of the last MPC meeting indicate that inflation is not a concern despite the recent CPI blip upwards. There doesn't appear to be any indication that the MPC are interested in raising interest rates anytime soon. As well as FT Alphaville's analysis, the full minutes are at http://www.bankofengland.co.uk/publications/minutes/mpc/pdf/2010/mpc1001.pd
Posted by quiet guy @ 07:49 AM (898 views) Add Comment
13 Comments
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1. paul said...
Now is the time for the currency market to see through this charade. I doubt it will though.
2. mystie010 said...
In my opinion they are a bunch of thieves. Stealing from savers to balance their books lets hope that the next government sort them out but I doubt it.
3. Madam said...
Its because the savers are not taking any action. Inbreda was right. Savers should unite and withdraw their cash. Even if the consequences are too terrible, at least something will be done about it and quickly. Of course the MPC aren't going to raise rates whilst the sheeple savers do nothing.
4. mr g said...
"as well as the impact of the various headwinds and tailwinds affecting activity and inflation."
Bullsh*t, pure and simple bullsh*t.
5. cynicalsoothsayer said...
As long as private sector pay settlements are negative they assume underlying inflation will stay low.
6. a saver said...
Couldn't agree more mystie@2. I used to have most of my UK cash in an HBOS instant access ac earning 6.35%, which got automatically transferred to my current account and was a great back-up, if there was a bit of a gap in payments coming into my business.
Now my cash is divided between several banks, mostly in fixed term bonds, which is extremely inconvenient and involves a lot of guesswork as to when I might need it for house purchasing. I've just had to make a withdrawal today to pay my tax bill.
Thanks to the MPC I have been forced to forego about 50% of my usual bank interest, despite having half of my cash abroad and spending hours researching the best savings account every time I get paid, to bail out the reckless. The cash in my SIPP is earning 0.25%. I used to console myself with thoughts of not long now till the HPC gets going but I am beginning to despair of that now.
7. timmy t said...
I thought the MPC had one remit and that was to keep inflation at 2%, and their main tool for achieving this was interest rates. Good to see that with inflation racing away and interest rates still at historic lows, not only do they have no intention of raising rates, but they're not concerned either... If you look at the BoE website and in particular their 2 Core Purposes, not only would I be concerned, I would have resigned out of shame.
8. mr g said...
Madam@3 "Savers should unite and withdraw their cash"
OK, I'm up for it but how do you organise / co-ordinate a campaign like that?
9. Madam said...
Mr g
how about online and through emails to see the response. A date has to be set though. Any more ideas out there?
10. mystie010 said...
I reckon that the Daily Mail would be up for it becuase they are starting some sort of campaign against the way banks have ripped people off regarding the rates on their isa savings. Maybe it is time to act. Lets show these *ankers who are really running the show lets get our cash out now! I think I may just ring the Daily Mail and see if they would be up for it. If I do I'll let you all know how I get on.
11. rumble said...
Are we targeting one bank, or all?
12. mr g said...
@10 Are we targeting one bank, or all?
All the b*ggers!
13. rumble said...
Just give me date.