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fellow

Boe Must Take Action To Keep Inflation Out Of `national Psyche,' Cbi Says

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http://www.bloomberg.com/news/2011-03-07/boe-rate-rises-may-keep-inflation-out-of-u-k-national-psyche-cbi-says.html

The Bank of England will probably increase interest rates at a “slow and steady” pace starting in the next quarter to prevent soaring inflation from becoming embedded in the “national psyche,” the Confederation of British Industry said.

“We’re keeping a very close eye on potential for an inflationary wage spiral,” CBI Director-General John Cridland said as Britain’s biggest lobby group published its submission for Chancellor of the Exchequer George Osborne’s March 23 budget in London today. “We must not allow inflation to get back into the national psyche.”

Soaring food and energy costs helped to push inflation to 4 percent in January, twice the Bank of England’s target. While the bank forecasts a further rise in the inflation rate in the coming months, it’s holding off increasing its benchmark interest rate amid what Deputy Governor Charles Bean has called the “fragility” of the recovery.

All 61 economists in a Bloomberg News survey forecast that the bank’s nine-member Monetary Policy Committee, led by Governor Mervyn King, will leave its key rate at a record low of 0.5 percent on March 10. The policy makers will also keep their bond-purchase plan at 200 billion pounds ($326 billion), said all 34 economists in a separate poll.

‘Slow and Steady’

“Our view on the likely course of interest-rate changes is that there will be a slow and steady increase, possibly starting modestly in the spring, but leaving interest rates still at historically low levels,” Cridland said. He also said that some of the factors behind the accelerating inflation are “global, where it’s less obvious that increases in interest rates will have some effect.”

The number of U.K. manufacturers planning to raise prices as raw material costs surge exceeded those planning cuts by 39 percentage points, the highest since data collection began in 2000, the Engineering Employers Federation said today in a report.

Investors have priced in a 25 basis-point jump in the rate by June, according to forward rates on the sterling overnight interbank average, or Sonia, compiled by Tullett Prebon Plc. It will rise to 1 percent by November, the data show.

If rates have to rise, then why on Earth are they not going to raise them on Thursday?

Edited by fellow

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Who needs food as long as those poor mortgage debtors are struggling with payments, won't you think of the children ( just feed them gruel)?

lets keep those interest rates at the lowest point ever...you know it makes sense. :huh:

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Who needs food as long as those poor mortgage debtors are struggling with payments, won't you think of the children ( just feed them gruel)?

lets keep those interest rates at the lowest point ever...you know it makes sense. :huh:

The longer they leave interest rates at these stupidly negative levels, the more it undermines confidence in the pound and the better the prospects for the continued value appreciation in precious metals. Good work Merv, you d'man! :D

Edited by General Congreve

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I seriously think if UKIP make INFLATION the central tenet of their campaigning henceforth, not europe, they could replace the Libdems as the 3rd party.

Theyre the only guys ive heard speak up about Fractional reserve, against QE...

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CBI Director-General John Cridland said as Britain’s biggest lobby group published its submission for Chancellor of the Exchequer George Osborne’s March 23 budget in London today. “We must not allow inflation to get back into the national psyche.”

Doesn't he listen to/read/watch the news.

Edited by billybong

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What is it with these organisations and the people that run them that at somepoint they lose the ability to in anyway distinguish between:

1) The way things actually are

2) The way I wish things were

And in fact see no need to do so, and act as though they are equivalent.

Morons.

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It's no wonder the country's in the state it's in with the CBI demonstrating typical lack of prescience again.

The task for the UK is going to be almost insurmountable with the team they currently have at the CBI, BoE etc etc etc.

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It's no wonder the country's in the state it's in with the CBI demonstrating typical lack of prescience again.

The task for the UK is going to be almost insurmountable with the team they currently have at the CBI, BoE etc etc etc.

Skilled at troughing but little else.

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This is the problem with having conmen in charge of eveything - they think all they have to do is convince people to ignore or discount negatives* and all will be well.

Tossers.

*Such as not being able to afford food.

+1

It will all be ok........till its not ok

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If rates have to rise, then why on Earth are they not going to raise them on Thursday?

Waiting for the impact of the increase in vat data....and then there is the budget due? :unsure:

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“We’re keeping a very close eye on potential for an inflationary wage spiral,” CBI Director-General John Cridland said

Too late- executive pay has more than doubled in the last few years...

But, of course, that kind of wage inflation is perfectly acceptable to the CBI - it's when poorer people are in danger of getting more that these guys leap into action to put a stop to it. :lol:

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“We’re keeping a very close eye on potential for an inflationary wage spiral,” CBI Director-General John Cridland said as Britain’s biggest lobby group published its submission for Chancellor of the Exchequer George Osborne’s March 23 budget in London today. “We must not allow inflation to get back into the national psyche.”

What they mean is that the public shouldn't find out that "inflation" is being used as an excuse for firms to raise their prices to feed their salary excesses.

Just a small number of remuneration increases listed in company annual reports for 2009 and 2010 for firms mentioned on this site recently.

Next

S A Wolfson £831k to £1.7m (+109%)

C E Angelides £585k to £980k (+67%)

D W Keens £560k to £936k (+67%)

A J Varley £423k to £789k (+86%)

http://www.nextplc.co.uk/nextplc/financialinfo/reportsresults/2009/jan10/jan10-c.pdf

HMV

Simon Fox £579k to £874k (+51%)

Neil Bright £349k to £559k (+60%)

Gerry Johnson £312k to £494k (+58%)

Robert Swannell £50k to £200k (+300%)

http://2010hmvgroup.ry.com/Accounts_and_Downloads/PDFs/directors_rem_report.pdf

Kesa

Thierry Falque-Pierrotin 2009 to 2010

£521,838 to £2,105,430

http://kesaelectricals.com/results-and-reports#117|tab=136

Halfords 2009 to 2010

David Wild £799,000 to £1,134,000 (+42%)

Nick Wharton £384,000 to £555,000 (+44%)

Paul McClenaghan £383,000 to £540,000 (+41%)

http://www.investis.com/hal/ir/fininfo/reports/rep2010/ar2010/ar2010.pdf

JJB Sports Total Director Rumeneration

2010 £2,593,000

2009 £1,291,000

"The Committee determined that the targets had all been met and therefore the Executive Directors were each

entitled to a bonus of 100% of annual basic salary."

http://www.jjbcorporate.co.uk/pdf/reports/2010%20-%20Annual%20Report.pdf

Sainsburys 2009 to 2010

Justin King £2,048,000 to £3,348,000 (+63%)

Mike Coupe £937,000 to £1,407,000 (+50%)

Darren Shapland £967,000 to £1,542,000 (59%)

http://www.j-sainsbury.co.uk/ar10/downloads/pdf/Sainsburys_AR10_Full.pdf

South West Water

Directors emoluments

2010 £1,394,000

2009 £1,183,000

Up 17.8% in a year

2006 £606,000

Up 130% since then

http://www.southwestwater.co.uk/media/pdf/3/g/SWW_AR_FIN_STATEMENTS_2010_Cover.pdf

http://www.southwestwater.co.uk/media/pdf/p/7/31march2006finalAccountsV3_plusFrontCover_1.pdf

Morrisons

Increase the maximum annual bonus potential for Executive Directors from 100% of base

salary to 200% of base salary for 2010/11.

Increase the level of Long Term Incentive Plan (LTIP) awards for Executive Directors

(with the exception of the incoming Chief Executive) for 2010/11 from 200% of salary to

240% of salary. The incoming Chief Executive will receive an LTIP award equal to 275% of salary.

These award levels are within the individual limit of 300% of salary contained in the LTIP rules.

The Committee, therefore, very quickly took certain steps to this end and agreed to an additional LTIP award of

100% of salary to these two individuals, in addition to the 200% of salary award already received

in 2009/10

http://www.morrisons.co.uk/Global/Images/Corporate/Annual%20Report/Morrisons_AnRep10.pdf

Aviva

Andrew Moss, Group Chief Executive

Basic Salary £925,000

ABP £1,029,294 (111.3% of basic salary)

OATTV Plan £501,443

LTIP – Face Value of grant £1,618,750

ACAP £462,500

http://www.aviva.com/library/reports/2009ar/downloads/directors_remuneration_report.pdf

Tesco

Terry Leahy £9.1m to £15.6m

http://www.thisismoney.co.uk/news/article.html?in_article_id=517324&in_page_id=2

annual bonus payouts ranged from 60% to 90% of maximum.

The maximum potential bonus was 250% of salary for the Group

CEO , 300% of salary for the US CEO and 200% of salary for other

Executive Directors;

• long-term incentive payout was 90% of a potential maximum of

100% of salary;

• no material changes to policy, remuneration mix or scale of incentives;

• deferred awards, already earned from prior years, representing

4.6 million shares became available to Directors;

http://www.tescoplc.com/annualreport09/downloads/

Reckitt Benckiser

Pass the Nurofen please. The scale of Bart Becht's pay packet at Reckitt Benckiser is so shocking it may be necessary to take a lie-down and a couple of his company's bestselling painkillers. Ninety million pounds. For one man, in one year, from a company he does not own. That's £1.7m a week. More than quarter of a million pounds every day. Nearly double the previous FTSE 100 pay record. We've got used to Becht topping the pay charts every year, with huge sums like £36m and £22m. But £90m?

Last week CBI boss Richard Lambert warned that boardroom pay was getting so out of kilter with average wages that bosses risked being regarded as "aliens". Well Bart Becht is the Emperor Dalek.

Chief executive pay, said Lambert, had risen from 47 times average wages to 81 times in the last 10 years. Becht, however, received the same pay as 3,000 of Reckitt Benckiser's staff last year – or 10% of the group's workforce. His rewards have spiralled tenfold in a decade and he has now banked more than £200m from this business since 2005.

Becht's pay outstrips even the banker brigade, who have been so castigated in recent years. At least bankers do something that is hard to get your head around. Selling Cillit Bang is not rocket science. Reckitt Benckiser, in Becht's own words, sells "very stupid products".

http://www.guardian.co.uk/business/2010/apr/07/viewpoint-bart-becht

Paul Moody CEO of Britvic

2010 Basic Salary £490k Bonus £638k (130%!!) plus £22k in taxable benefits giving a total of £1,150,000

2009 he got £997,000 So a 15% increase.

http://ir.britvic.com/~/media/Files/B/Britvic-IR/Attachments/pdf/presentation/2010/reports/ar_2010_final.pdf

In 2006 he got £366,000 (319%!!!)

http://ir.britvic.com/~/media/Files/B/Britvic-IR/Attachments/pdf/presentation/2006/reports/Annual%20Report%202006.pdf

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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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