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Inflation Target

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The MPC doesn't care about the inflation target. If they did they would have raised rates by now.

George Osborne doesn't care about the inflation target. If he did he would have sacked Mervyn King by now.

They are both hoping that low interest rates will deliver a phantasmagorical deus ex machina: rising GDP and rising tax revenues with low wage inflation.

Another word for that?

A bubble.

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The MPC doesn't care about the inflation target. If they did they would have raised rates by now.

George Osborne doesn't care about the inflation target. If he did he would have sacked Mervyn King by now.

They are both hoping that low interest rates will deliver a phantasmagorical deus ex machina: rising GDP and rising tax revenues with low wage inflation.

Another word for that?

A bubble.

forever blowing bubbles, well it will end in tears!

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The public are fools.

Why not change the target to 10% AND rename it to Economy Growth Oscilator. Or EGO for short!

suggest it to mervvvvvvvvvvvvvv

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Inflation is probably already at 8-10% with a negative base rate of -7.5%!!!

Unprecedented times with intellectual midgets running the country.

Nominal GDP (not including printed money) is collapsing so the debt increases as a percentage of GDP.

They will print and hold down short term rates but all it will do is destroy our currency.

£10 for a burger coming soon.

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Inflation is probably already at 8-10% with a negative base rate of -7.5%!!!

Unprecedented times with intellectual midgets running the country.

Nominal GDP (not including printed money) is collapsing so the debt increases as a percentage of GDP.

They will print and hold down short term rates but all it will do is destroy our currency.

£10 for a burger coming soon.

And the wage increases to pay for it will be targeted as that's bad inflation.

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And the wage increases to pay for it will be targeted as that's bad inflation.

Rising unemployment will put paid to wage increases for most. Unfortunately they will misinterpret this as a sign they can print even more.

IMHO I believe the game is now up and seriously high inflation (minimum) is already baked in the cake.

The deficit id not under control, Zero interest rates will continue and more printing is inevitable if this carries on much longer then we will go hyper.

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Inflation is probably already at 8-10% with a negative base rate of -7.5%!!!

A good reason for STRs with big deposits to borrow as much a possible for a house whilst keeping their savings in NS&I tax-free RPI-linked certs. This subsidy is getting quite ridiculous.

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A good reason for STRs with big deposits to borrow as much a possible for a house whilst keeping their savings in NS&I tax-free RPI-linked certs. This subsidy is getting quite ridiculous.

I notice you used the word "keeping", rather than "putting".

Good luck "putting" your money in those... ;)

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A good reason for STRs with big deposits to borrow as much a possible for a house whilst keeping their savings in NS&I tax-free RPI-linked certs. This subsidy is getting quite ridiculous.

RPI linking won't save anyone and being in debt is also a no no IMO.

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Thier real target is somewhere around 20% though, is it not. Not that I am making a threat but if I ever met Merv the perv in the street, I'm sure Id never get fed up stamping on him, the thieving banker turd.

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The salariat are not seeing inflation busting pay deals. It is becoming harder to move across to another employer without taking a massive paycut. A few years back a professional could easily move into a new job paying the top end of the salary range of £45-55k. These jobs are now being advertised at £35-45k and my guess is the ones getting them will be getting the lower end of the wedge. Not good for house prices. Perhaps now is the time to include house prices in the CPI index!

edit: corrected and duplicated :lol:

Edited by tomposh101

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Perhaps now is the time to include house prices in the CPI index!

All the top thieves in the coalition have recently mentioned Labour's housing bubble or boom.

Makes sense if the reason is to include house prices in the CPI in the March budget. To protect the people from another boom, i.e. steal more from savers by keeping rates lower for longer. If prices rise later they can always take house prices back out. Then there will be no need for the Bank of Theft from Savers in England to be so vigilant.

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Can any of you people who are calling Merv an idiot please explain to me how the BoE can lower inflation? And I'm not talking about a primer in A-level economics standard monetary theory, I've been through all that, and at degree level, I mean an actual, real world, explanation of the effect of current interest rate policy on inflation. Because the way some of you talk I must be a real idiot for not understanding it.

Edited by pablopatito

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Can any of you people who are calling Merv an idiot please explain to me how the BoE can lower inflation?

I am puzzled by that question. So why is "increase interest rates and reverse QE" not both the obvious and correct answer?

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Well it would make things easier wouldn't it

It wouldn't because then the BoE they would have to up the rate of interest to about 6%. This is because if the government wants to sell bonds they have to make it appear that if you buy them you wouldn't just lose money on them. If inflation was 6% and interest rates were 0.5% who in their right mind would buy bonds just to see them devalue? Currently the only reason I can see for buying bonds is the hope that the BoE will introduce another round of QE to up their price.

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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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