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Apparantly The Econpmy Needs Rebalancing

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it'll all be rebalanced soon

Spencer Dale, the Bank’s chief economist, said households would need to consume less and he indicated that interest rates would rise this year.

He said he was worried about the persistently high levels of inflation and the weakness of the economic recovery. Mr Dale said that there were “relatively hard times ahead”.

Mr Dale said: “What we’re going through is part of a rebalancing where in the economy as a whole we need to consume less … We need to invest more and export more to the rest of the world.

“Part of the squeeze we’ve seen in real incomes is associated with that rebalancing, which fiscal policy can’t do anything to offset

it's all under control you know, just work harder and pay more, they'll sort it all out for you.

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Britain faces bleak two years after feeble economic growth

It would be great if the incompetent failures at the BoE could get their story straight just for once.

It's only a short few years ago when the governor was saying that the next decade wasn't going to be a nice decade (taking it upto something like 2018) now the latest BoE crazy says just give it a couple more years so that would take it to 2013.

It's not as if things have got any better over the last few years indeed according to the coalition after the 2010 election they found that things were much worse than they had ever expected.

Edited by billybong
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Britain faces bleak two years after feeble economic growth

On the plus side, the bank says that inflation will be lower in 18 months.

True they did say that 18 months ago. And 18 months before that. And 18 months before that....

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Yawn, more self justifying rhetoric from the BOE. IR will not rise because of the effect on house prices. It is very simple, the BOE will not admit this as they are meant to fight inflation not support house prices.

Instead we end up with BS like this from Dale which is nothing but propaganda to support IR decisions made over the last year.

They are taking a massive risk as the same insane pre crisis behaviour begins to take hold, massive mortgages are taken out without anyone considering the risk of IR rising in the future. The whole thing becomes self fulfilling as more debt piles up, it becomes even harder to ever raise IR.

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Two bit spin merchants. The PR from this bunch of clowns is disgraceful.

The economy is unbalanced due in large part to their current and previous actions. They have been meddling with the economy for ages and the more they have done do the worse the misallocation of capital and loss of real jobs becomes.

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He's referring to Merv's boe research. You may find it on their site. (I thought it said £30bn pa though- still too much).

Or perhaps worth following the links in Robert Peston's blog here http://www.bbc.co.uk/blogs/thereporters/robertpeston/2011/04/do_banks_use_10bn_subsidy_wise.html

"As you will recall from earlier posts, Andy Haldane of the Bank of England calculates this subsidy to have been worth around £100bn in 2009 for the giant banks alone - and £57bn per year on average over 2007-9 for all British banks."

More on Andy Haldane's figures here http://www.ianfraser.org/andrew-haldane-outlines-proposals-for-breaking-the-doom-loop/

The banks disagreed with the figures and commissioned an assessment from the consultancy firm Oxera, which came up with a much lower figure, £6 billion a year. * As Pesto says "Interestingly, the Independent Commission on Banking finds more fault with the assumptions built into Oxera's analysis than with those employed by Haldane."

* As a wise man once said, there isn't a word for how unsurprised I am at that.

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  • 433 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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