Monday, Aug 09, 2010
Now there's a surprise - they got it wrong again...
Telegraph: Gloomy outlook expected from Bank of England
''The Bank of England is expected to give a gloomy assessment of Britain's short-term prospects this week, forecasting weak growth and high inflation.'' Typical public sector, get it wrong as many times as you like and still get to keep your job.
Posted by hpwatcher @ 08:14 AM (924 views) Add Comment
6 Comments
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1. paul said...
I loved the line:
"The MPC is increasingly aware of, and somewhat embarrassed by, the persistence of above-target inflation"
But obviously, despite creating the inflationary pressure itself with QE, they're still not embarrased enough to actually do anything about it...
P.S. I wonder what the inflation figures will show this month - 3.8%?
2. a saver said...
The MPC/BoE have been banging on about the risks of deflation and predicting that CPI inflation will fall back very soon-and been proved wrong over and over. As hpwatcher says, only in the public sector. CPI has been more than 50% over target for all these months and we're still stuck with this bunch of clowns.
3. hpwatcher said...
The MPC/BoE have been banging on about the risks of deflation and predicting that CPI inflation will fall back very soon-
It's a deception to 'frame' the increasing inflation; and, of course, justify any additional QE - all intended to help inflate away UK debt.
4. geed said...
This admission that they will sit on their hands "because inflation is due to fall in medium term etc....blah fr!ggin blah" is a clear sign that this base rate knob is crude, antiquated and ineffective. I imagine inflation will fall at some point in the future but we are HERE and NOW. Just not good enough and they never have been.
5. easybetman said...
http://www.telegraph.co.uk/finance/economics/7801098/UK-must-not-fall-for-the-false-promise-of-higher-inflation.html
Some people have suggested that a bit of extra inflation might be a good thing. After all, wouldn't it help to get the economy going by reducing the real value of public and private debt? This is misguided. Aside from the dubious morality of redistributing wealth from savers to borrowers, past experience shows that a bit of inflation has a nasty habit of turning into a lot of inflation.
Say one thing, do another..
6. mander said...
More tactics to scare off savers into buying property. But inflation is not the solution to save high house prices because people earnings are not getting inflated in the same time and it would only make matters worse.