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Bank Of England Urged To Raise Interest Rates By Ex-Mpc Members

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http://www.telegraph.co.uk/finance/economics/interestrates/8314084/Bank-of-England-urged-to-raise-interest-rates-by-ex-MPC-members.html

Two former Bank of England policymakers would vote for an increase in interest rates on Thursday to convince the market that the central bank is not going soft on inflation.

DeAnne Julius and Tim Besley said they would support a rate rise were they still on the nine-member Monetary Policy Committee (MPC), so long as the majority verdict was to leave rates unchanged at 0.5pc. The MPC will publish its decision at noon on Thursday.

Ms Julius, a founder member of the MPC and now chairman of international affairs institute Chatham House, told Fathom Consulting's Monetary Policy Forum that she would "put down a marker" for a rate rise. "If the majority was for hold, I would vote for an increase," she said.

Mr Besley, who was on the MPC until August 2009, also indicated he would join current MPC members Andrew Sentance and Martin Weale in voting for a rise so long as his was not the swing vote. "I'm pleased two members want to raise rates," he said.

"I remember back in 2008 we were in the same place – that there should be some view on the committee that we should be prepared to raise rates. My vote then was the signal that rates could rise."

Both expressed concerns about rising inflation, which is expected to break through 4pc when the latest figures are published next week – double the Bank's target level. "I think there is a credibility problem," Ms Julius said. "We could well see that our high inflation gets embedded into parts of the wage-bargaining system.

"I know some members of the committee have doubts about whether the Bank's forecasting model is the best way of forecasting the economy."

Pressed on when she expected rates to rise, she predicted May.

Mr Besley added that "it's easy to come up with a scenario for inflation coming through" but that "at the moment I think the indicators of credibility are broadly suggesting people do believe in the process and they do find it credible".

The MPC votes on rates with the committee split three ways. Adam Posen has called for another £50bn of quantitative easing, Mr Sentance and Mr Weale have voted for a rise to 0.75pc an the other six members are in favour of holding rates.

Last month, several members debated the case for an immediate rate rise. However, City economists believe rates will be left on hold on Thursday due to ongoing fears about growth.

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The former MPC members are actually saying that they'd vote raise rates as long as that didn't actually mean that rates were raised. Vigilant deckchair moving.

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The former MPC members are actually saying that they'd vote raise rates as long as that didn't actually mean that rates were raised. Vigilant deckchair moving.

Real world translation: they wouldn't raise the interest rate.

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The former MPC members are actually saying that they'd vote raise rates as long as that didn't actually mean that rates were raised. Vigilant deckchair moving.

What the hell is that all about? Surely they should vote irrespective of the other members. If they thought this was nothing would ever get decided on!

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What the hell is that all about? Surely they should vote irrespective of the other members. If they thought this was nothing would ever get decided on!

Who knows what sort of shit goes on in this economic idiot box.

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The former MPC members are actually saying that they'd vote raise rates as long as that didn't actually mean that rates were raised. Vigilant deckchair moving.

Thanks for pointing that out. I did read it myself but it sounded so stupid I thought I must have read it wrong.

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Economic guru would vote for a rise, just so long as a rise didn't happen.

Riiight. The lunatics have taken over the asylum. :ph34r:

They created the asylum. Lets have some more double speak, this is how to do it.

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Thanks for pointing that out. I did read it myself but it sounded so stupid I thought I must have read it wrong.

+1

So what he was trying to say was, a few more members of the MPC should vote for a rise, not enough to actually rise rates, but then at least the markets think it's a possibility :huh::blink::unsure:

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Reading an article by Danny Blanchflower recently he mentioned that when Sentence goes he will be replaced with another hawk. maybe they what their old jobs back. Sounds like a good job to me I wouldn't mind it. only two days work a month. Turn up on a Wednesday some one says shell we increase interest rate everybody rolls round the floor in laughter pick yourself up off the floor and go down the pub. on the way to the pub on Thursday tell the press your being vigilant..

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Two former Bank of England policymakers would vote for an increase in interest rates on Thursday to convince the market that the central bank is not going soft on inflation.

DeAnne Julius and Tim Besley said they would support a rate rise were they still on the nine-member Monetary Policy Committee (MPC), so long as the majority verdict was to leave rates unchanged at 0.5pc. The MPC will publish its decision at noon on Thursday.

It was bound to happen. The dumbing down of education, the plain idiocy, the soft reasoning has reached the upper decision making levels of the nation's economy.

Actually it's becoming more and more clear that it happened many many years ago but it's only now that they're so zombified that it's even beyond them to disguise it. Never mind conduct a credible effort on inflation, interest rates or anything else for that matter.

Edited by billybong

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So this is how they attempt to convince the country and international investors that they aren't inflation-mongering morons to the last man.

And now the cat is out the bag in general. What was supposedly a 9 member vote is clearly a binary system. They've moved their pensions into linkers and hope the country won't start asking for wage rises, based on this sham of a voting system.

Crazy.

"Mr Besley, who was on the MPC until August 2009, also indicated he would join current MPC members Andrew Sentance and Martin Weale in voting for a rise so long as his was not the swing a meaningful vote."

He added, "I love all this prestige without any real responsibility."

Edited by Sledgehead

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Reading an article by Danny Blanchflower recently he mentioned that when Sentence goes he will be replaced with another hawk. maybe they what their old jobs back. Sounds like a good job to me I wouldn't mind it. only two days work a month. Turn up on a Wednesday some one says shell we increase interest rate everybody rolls round the floor in laughter pick yourself up off the floor and go down the pub. on the way to the pub on Thursday tell the press your being vigilant..

Yeah, I saw that. Feck, Sentance's lone vote (until last month) was the only thing keeping me going; keeping the dream alive that maybe, just maybe, this month they might...nah.

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  • 284 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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