Friday, Jul 23, 2010
After releasing their minutes the MPC do a bit of PR
Independent: Spencer Dale: The Bank's man keeps a hawkish eye on the 'evils' of inflation
Spencer Dale, chief economist of the Bank of England, said "Inflation has come out a little higher than expected, and the news on VAT in the June Budget means that the time it will take inflation to get back to target will be pushed out, and I expect it will be above target until the end of next year ... Our central view was that inflation would be below 1 per cent, and, as you know, inflation is above 3 per cent. We've been very surprised about that and we need to understand the factors ... Now, we can come up with all sorts of clever and legitimate reasons to explain our view but at some point people will say 'inflation just seems higher than it used to be' and that is a very substantial risk. We're aware of that ... We know the evils of inflation. We have to be incredibly vigilant."
6 Comments
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1. paul said...
"We know the evils of inflation. We have to be incredibly vigilant."
He didn't finish his sentence.
"We know the evils of inflation. We have to be incredibly vigilant, but also incredibly careful to do nothing about it."
2. mystie010 said...
I wish they would just shut up and chuffing do something about it!
3. Crunchy said...
I wished they would just fess up and be honest. We all know why we have inflation. It's free money to some plus interest via enforced
taxation and it's a never ending money expansion spiral because of the interest. Nice! For a Central Bank to try and control inflation is
laughable.
It's like an arms dealer saying they don't want wars, more honestly they are hoping that a huge bomb doesn't put them out of business.
The only time it makes sense for them is when inflation really rips, untill then it's all fear and greed at play. IMHO.
4. mark said...
I notice in another article the BOE state inflation will be an issue until end of 2011 and will exceed the magic figure.
I think they should address this now, this is supposed to be their remit, not making stupid statements which make no sense at all. the BOE are no longer acting in the manner they should, nor are they acting in our interest, they should all be fired.. YOU ARE FIRED to all at the BOE
5. a saver said...
'Since the spring of 2006 inflation has been above target for 41 out of 50 months and for two years it has averaged over 3 per cent."
The MPC have totally failed to contain inflation and been totally wrong in their predictions, over and over again.
Why have this VI bunch not been thrown out on their sorry A@@es?
6. Crunchy said...
Government to issue currency at no interest with 'severe' penalties for corruption or treasonous acts would be my solution.
Financial freedom at long last.
Simples!
Recapcha- 'Rothchild FEEL' {{{{SPOOKY}}} on first try.