Sentance Launches Vicious Attack Against Merv

[Realistbear]

http://uk.finance.yahoo.com/news/Sentance-slams-Bank-forecasts-reuters_molt-1029358735.html?x=0

Sentance slams Bank forecasts, urges rate hike now

LONDON (

Reuters

) - Bank of England rate-setter Andrew Sentance made his most outspoken attack yet on the central bank's economic forecasts Thursday, saying they understated inflation risks and the need for a rate hike.

The long-standing hawk, who has voted for higher interest rates since last June, highlighted the divisions on the Bank's Monetary Policy Committee and made clear his growing frustration with the central bank's poor track record on forecasting inflation.

Sentance's criticism set him on a collision course with Bank Governor Mervyn King who Wednesday warned markets not to get ahead of themselves in pricing in monetary tightening.

"My judgement is that the upside risks to inflation are understated in the published fan charts. And monetary policy would most likely need to be tightened faster and by more than the markets currently expect to bring inflation back to target," Sentance told a conference in London.

Sterling rose as investors saw the remarks as a further sign that King may be losing the centre of gravity on the nine-member committee.

Sterling seems to rise regardless of all of the fundamentals but one: IR hikes.

If Merv wants to keep the housing bubble intact he is 100% right in not hiking IR.

If he wants to precipiate the country into a serious recession he is 100% wrong to hike.

He is damned either way. The LUNCH MUST BE PAID FOR--hike or no hike, machts nicht

Edited February 17, 2011 by Realistbear

[exiges]

Sentance was joined by MPC newcomer Martin Weale in voting for a rate hike in January, and there is speculation that minutes from this month's meeting, due next week, will show that others joined them.

[theonlywayisdown]

Does Mervin King actually do anything?

Hes just a podgy old bloke with white hair, thick glasses and has a posh surname.

Ok, so he votes no every month to interest rate rises, and gets his secretary to write a letter to the PM. But what else?

Edited February 17, 2011 by theonlywayisdown

[bomberbrown]

My instinct on this is when the vote finally goes in the favour of a rise, no one on the MPC will want to be seen on the minority side.

Expect the tables to turn in any one month flat.

[exiges]

Does Mervin King actually do anything?

Hes just a podgy old bloke with white hair, thick glasses and has a posh surname.

I always thought it was an abbreviation.. 'king Merv..

[Slumpmonkey Returns]

Does Mervin King actually do anything?

Hes just a podgy old bloke with white hair, thick glasses and has a posh surname.

Ok, so he votes no every month to interest rate rises, and gets his secretary to write a letter to the PM. But what else?

PMSL

[Bingo]

Merve is consistently wrong on inflation forecasts and growth forecasts, not sure how he remains in the country's top economist position...

[interestrateripoff]

Does Mervin King actually do anything?

Hes just a podgy old bloke with white hair, thick glasses and has a posh surname.

Ok, so he votes no every month to interest rate rises, and gets his secretary to write a letter to the PM. But what else?

http://www.youtube.com/watch?v=lU0w_LmD9lM&feature=related

Comedy wise he's a bit all hat.

[Democorruptcy]

http://uk.finance.yahoo.com/news/Sentance-slams-Bank-forecasts-reuters_molt-1029358735.html?x=0

Sentance slams Bank forecasts, urges rate hike now

LONDON (

Reuters

) - Bank of England rate-setter Andrew Sentance made his most outspoken attack yet on the central bank's economic forecasts Thursday, saying they understated inflation risks and the need for a rate hike.

The long-standing hawk, who has voted for higher interest rates since last June, highlighted the divisions on the Bank's Monetary Policy Committee and made clear his growing frustration with the central bank's poor track record on forecasting inflation.

Sentance's criticism set him on a collision course with Bank Governor Mervyn King who Wednesday warned markets not to get ahead of themselves in pricing in monetary tightening.

"My judgement is that the upside risks to inflation are understated in the published fan charts. And monetary policy would most likely need to be tightened faster and by more than the markets currently expect to bring inflation back to target," Sentance told a conference in London.

Sterling rose as investors saw the remarks as a further sign that King may be losing the centre of gravity on the nine-member committee.

Sterling seems to rise regardless of all of the fundamentals but one: IR hikes.

If Merv wants to keep the housing bubble intact he is 100% right in not hiking IR.

If he wants to precipiate the country into a serious recession he is 100% wrong to hike.

He is damned either way. The LUNCH MUST BE PAID FOR--hike or no hike, machts nicht

You posted on the other Merv and Sentance thread

[Pent Up]

there is speculation that minutes from this month's meeting, due next week, will show that others joined them.

Ohh that would be nice!

[papag]

Does Mervin King actually do anything?

yes hes a very busy man he does a great Benny Hill tribute night

[Pent Up]

Did I read somewhere that Merv is packing it in this year? Or did I just make that up?

Edit: he's got two more years.

Edited February 17, 2011 by Pent Up

[123Jim]

King said that IN THE ABSENCE OF any more commodity price increases (in our dollar-related Pound), then inflation should fall back in the summer

My best guess if it doesn't, August/September, or if commodity price increases are still showing up (pretty likely, following gold/silver's new leg up which is just starting), then they HAVE to move

Once they move RPI rates will move up too on the basis of increased loan costs on housing. Also financing costs incerasing will add fuel to business jacking up prices.

Then we'll be into not stagflation but recessioninflation for some while.

We just have to go through the HP purge.