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Another Email To Mervyn King

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Dear Homeless,

Thank you for your email of 16 November. I would like to reassure you that the Bank’s Monetary Policy Committee remains fully committed to meeting its inflation target of 2.0%. As you note, annual consumer price inflation is currently above target. But, with demand still relatively weak following the sharp fall in output in 2008-09, this reflects a number of temporary shocks to the price level from the increases in value added tax, higher commodity prices and higher import prices following the recent depreciation of sterling.

The Committee has judged that, on balance, inflation is likely to fall back towards the target as the effect of these shocks wanes. But, as you note, there will always be risks in both directions. If the weakness in wage growth continues, once the temporary effects of VAT increases and higher import prices wane, then inflation could move significantly below the target. And, inflation could remain above target if the prices of commodity and other imported goods and services increase further. Given the balance of these risks, the Committee judged at its November meeting that it would be appropriate to keep interest rates at 0.5%.

You note the impact of low interest rates on savers. The Committee understands and sympathises fully with the difficult position many savers and others are in at the present time. I have regularly expressed my sympathy with savers in speeches. And I remain concerned that many people are living on low incomes from their savings during this period of unusually low interest rates. I very much look forward to reaching the stage were a durable economic recovery allows interest rates to return to more normal levels.

With all best wishes.

Mervyn King

I asked if he and his committee felt the same levels of inflation as the regular man on the streets, considering their vast salaries, strangely he appears to have missed out answering that qustion.

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I asked if he and his committee felt the same levels of inflation as the regular man on the streets, considering their vast salaries, strangely he appears to have missed out answering that qustion.

Perhaps he felt that wasn't a very constructive repsonse.

The CPI and RPI indexes are carefully designed to reflect the man on the street's actual spending. The freely available docs define the process very transparently.

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I have regularly expressed my sympathy with savers in speeches.

At least they "sympathise" with the savers who have been ripped off by the bankers. Sympathy, you know, can go a long way. MM-mm a long way indeedy. Not a lot of sympathy about these days so its good to know the BoE are sympathetic............................................thinking about it, we could do with a bit more sympathy all round. Good thing, sympathy is.

Edited by Realistbear

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Just another thought, I wonder if its Merv that is being sympathetic to the savers or do you think its all the MPC members. It would be nice to think they were all sympathetic and not just Mervyn. Goes a long way--a little sympathy does.

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The's the same nonsense I got. No one believes a word of it. If he was doing his job interests would go up and down depending on the state of the economy. The BoE is currently robbing the people to save the bankers...doesnt matter how you dress it up. The BoE is not independent...its a ciry organisation with many links to the banks..how can they be independent.

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Time Merv got his P45

Hang on JUST a darn minute there! Merv is a nice man--he said he is sympathetic to savers what more should we want from him? Nice man is Merv. Very clean too.

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The Bank of Theft from Savers in England don't care about savers the annual report shows what they are most interested in

http://www.bankofengland.co.uk/publications/annualreport/index.htm

Deputy Governor Charles "Savers should stop moaning and spend their savings" Bean's pension.

Cash Equivalent 2009 £1,435,700

Cash Equivalent 2010 £1,972,600

Increase in Cash Equivalent £536,900

This is what Osborne Osborne had to say about savers when in opposition

Virtuous savers and pensioners have suffered most under Labour

Savers and pensioners are the forgotten victims of Labour's recession.

Over the past year, someone with £10,000 of savings in an easy access high street account has seen their income fall from £50 a month to less than £25. Having planned for their retirement and put money aside for a rainy day, pensioners and savers are seeing their living standards fall. Those who weren't caught up in Gordon Brown's Age of Irresponsibility are being made to pay the price for it.

Of course, cuts in interest rates by the Bank of England are absolutely necessary to try to restimulate the economy. That is why we called for them. But the unavoidable collateral damage on savers is devastating and it's simply not good enough for the Government to walk on by.

With the US Federal Reserve having reduced its interest rate to zero per cent, we may well see further rate cuts here. This would make life even more difficult for savers.

In circumstances like these, the Government should be there to help. But instead, Gordon Brown has made things worse.

First, he has systematically undermined Britain's savings culture over 10 years. In 1997, he made the calamitous decision to abolish tax relief on dividends paid to pension funds.

According to a report by a fellow of the Institute of Actuaries, this tax raid has slashed the value of private sector pensions by £175 billion. The number of members of private sector pension schemes has fallen from 6.1 million in 1995 to 3.6 million last year, while the savings ratio has more than halved.

Second, there are things Gordon Brown could be doing now to protect savers from further losses. He could suspend the requirement to annuitise accrued pensions at the age of 75. Labour's refusal to do so means that anyone turning 75 in the near future will receive a terrible deal when they are forced to buy an annuity, consigning them to a lower income for the rest of their life. This simply isn't fair. It's also unfair that Gordon Brown still hasn't dealt with the Equitable Life scandal. The Parliamentary Ombudsman found the Government at fault, and the Prime Minister promised that he would respond by Christmas – but is now refusing to take action. That's a disgrace, and won't restore confidence in our savings and pensions system. Third, with Labour's national debt forecast to double to a trillion pounds over the next five years, higher tax rises are inevitable.

While the Prime Minister may have forgotten about savers, the Conservatives have not. We would suspend the annuity rule. We would accept the Ombudsman's report on Equitable Life. We would increase the threshold for inheritance tax, so that the vast majority of responsible families who save for their children will be exempt from estate duty. And we would avoid adding recklessly to the national debt and constrain the growth of government spending.

However, we also want to help savers on more modest incomes, and take steps to encourage saving and reward financial responsibility. We are looking at the tax system to see what can be done. Our general election manifesto will include policies to help savers and pensioners, as part of our plan to deliver economic change for Britain.

George Osborne is the shadow chancellor

http://www.telegraph.co.uk/comment/personal-view/3835309/Virtuous-savers-and-pensioners-have-suffered-most-under-Labour.html

Pre-election Call me Dave was going to scrap 20% income tax on savings interest:

http://www.guardian.co.uk/politics/video/2009/jan/05/david-cameron-tax

The Tories kept saying they believe in "doing the right thing" turns out it was "saying the right thing", to grab votes based on lies!!

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The Bank of Theft from Savers in England don't care about savers the annual report shows what they are most interested in

http://www.bankofengland.co.uk/publications/annualreport/index.htm

Deputy Governor Charles "Savers should stop moaning and spend their savings" Bean's pension.

Cash Equivalent 2009 £1,435,700

Cash Equivalent 2010 £1,972,600

Increase in Cash Equivalent £536,900

This is what Osborne Osborne had to say about savers when in opposition

Pre-election Call me Dave was going to scrap 20% income tax on savings interest:

http://www.guardian.co.uk/politics/video/2009/jan/05/david-cameron-tax

Oh come on! That was before they saw the books/the pan-Euro crisis happened to completely eradicate any previous correct assumptions the libdems made about the Euro being a good thing. It all changed the day after the election, silly.

The Tories kept saying they believe in "doing the right thing" turns out it was "saying the right thing", to grab votes based on lies!!

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Hang on JUST a darn minute there! Merv is a nice man--he said he is sympathetic to savers what more should we want from him? Nice man is Merv. Very clean too.

I'm glad he expresses so much sympathy. It makes me feel all warm inside so I feel less bad when my money is being robbed due to his incompetence.

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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