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Mpc's New Member Keeps Alive Hopes Of Rate Cuts

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"DAVID WALTON, the newest external member of the Bank of England’s Monetary Policy Committee, kept alive hopes for further cuts in interest rates yesterday as he highlighted risks to the economic outlook.

In a speech to business leaders in Exeter that emphasised the highly uncertain outlook for borrowing costs, Mr Walton said that the MPC was united in believing that financial markets “got ahead of themselves” earlier in the year by anticipating three cuts in base rates by next spring."



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Weak household spending was one factor that led him to back the Bank’s quarter-point rate cut in August, he said.

Now, “a further period of subdued consumption growth seems quite likely”, Mr Walton suggested

About time the BOE came clean about their dishonest inflation targeting and their alternative remit.

Who made the deicison that debt based growth regardless of the consequences was the right path to travel?

Edited by OnlyMe

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What a surprise, another external member pedicting cuts.

Consumption at any cost folks.


In an interview Mr Nickell said consumer expenditure growth was being curtailed by high oil prices, increasing slack in the labour market and high levels of household debt. There was also a a possibility that household savings rates would rise, denting consumption growth.


“What happens to interest rates in the future depends very much on whether that forecast pans out.” Mr Nickell said he saw few signs that inflationary expectations had risen, in spite of high oil prices.

Edited by OnlyMe

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Can someone e-mail the BoE and ask them why they continually ignore

inflation and want to increase debt?

Not until they've breached their inflation target (CPI between 1.0% and 3.0%), they can't. Until that happens, you can't keep a straight face while you claim that they're ignoring inflation.

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  • 301 Brexit, House prices and Summer 2020

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