Jump to content
House Price Crash Forum
interestrateripoff

Bank's Benny Hill Predicts Cpi To Return To Target

Recommended Posts

http://uk.reuters.com/article/2011/07/11/uk-britain-boe-king-idUKTRE76A4YR20110711

British inflation will fall back towards its 2 percent target during the next two years, Bank of England Governor Mervyn King said in a foreword to the central bank's annual report, published on Monday.

King, as before, blamed past sterling depreciation rising commodity prices and increases in sales tax for the fact that inflation is well above target at 4.5 percent, and predicted that these factors would ease.

"The most likely outcome is that these factors will not continue to push up the price level in the future. So inflation should fall back towards the target during the next two years," he said in the foreword, which was dated 'June 2011'.

King added that the Bank's Monetary Policy Committee had kept to its anti-inflationary remit even though it had not raised interest rates to counter higher prices.

"By allowing inflation to remain above target and trying to support output growth, the Committee was acting in strict accordance with its remit," he said. "That remit explicitly allows the Committee to judge whether trying to keep inflation at target in all circumstances would lead to undesirable volatility in output."

Excellent news, the banks remit allows it to destroy growth to prevent volatility.

Although I suppose Mystic Merv might get one month in the next 24 which might be on target, he certainly won't get anywhere 23/24 on target.

Anyone got the latest fan chart showing how accurate/well the Bank of Muppets have been at controlling inflation.

Got to love him blaming Sterling depreciation for the increase in inflation, I wonder if anyone has asked what causes a currency to lose value?

Edited by interestrateripoff

Share this post


Link to post
Share on other sites
King added that the Bank's Monetary Policy Committee had kept to its anti-inflationary remit even though it had not raised interest rates to counter higher prices.

A hilarious statement to make. Words fail me .... and they appear to be failing Merv too :ph34r:

Share this post


Link to post
Share on other sites

http://uk.reuters.com/article/2011/07/11/uk-britain-boe-king-idUKTRE76A4YR20110711

Excellent news, the banks remit allows it to destroy growth to prevent volatility.

Although I suppose Mystic Merv might get one month in the next 24 which might be on target, he certainly won't get anywhere 23/24 on target.

Anyone got the latest fan chart showing how accurate/well the Bank of Muppets have been at controlling inflation.

Got to love him blaming Sterling depreciation for the increase in inflation, I wonder if anyone has asked what causes a currency to lose value?

Sorry to be blunt but the man is a cu*t

Share this post


Link to post
Share on other sites

People like King, and the Westminster politicos who facilitate his destruction of the UK occupy a rarified bubble of near-boundless prickery, limited only by the contents of our collective wallets.

...his predictions should be linked to final pension value ...there would be incentive for accuracy then... :rolleyes:

Share this post


Link to post
Share on other sites

When the rates go back up and inflation refuses to drop they'll have a shock.

They are simply just avoiding accepting that when rates rise the banks are going to have to pay for their past.

He'll be laughing as he sits back and enjoys his index linked retirement.

Share this post


Link to post
Share on other sites

...his predictions should be linked to final pension value ...there would be incentive for accuracy then... :rolleyes:

Well, that's another can of worms because the Treasury's pension fund is almost exclusively invested in index-linked securities. Now why would they do that if they really thought inflation was going to drop. It stinks.

Share this post


Link to post
Share on other sites

When the rates go back up and inflation refuses to drop they'll have a shock.

They are simply just avoiding accepting that when rates rise the banks are going to have to pay for their past.

He'll be laughing as he sits back and enjoys his indeX linked retirement.

:rolleyes:

Share this post


Link to post
Share on other sites

British inflation will fall back towards its 2 percent target during the next two years, Bank of England Governor Mervyn King said in a foreword to the central bank's annual report, published on Monday.

:lol::lol: the old jokes are the best jokes.

King added that the Bank's Monetary Policy Committee had kept to its anti-inflationary remit even though it had not raised interest rates to counter higher prices.

"By allowing inflation to remain above target and trying to support output growth, the Committee was acting in strict accordance with its remit," he said. "That remit explicitly allows the Committee to judge whether trying to keep inflation at target in all circumstances would lead to undesirable volatility in output."

The stuff of desperation after 6 years of missing the inflation target and having to also give up on the original rpi target because that was being missed as well.

Inflation will help to devastate the UK economy and that's why the BoE was given the job to limit it - low inflation/no more boom and bust. Tackling inflation is a very serious job. Give the job to someone who'll take it seriously.

Edited by billybong

Share this post


Link to post
Share on other sites

"British inflation will fall back towards its 2 percent target during the next two years, Bank of England Governor Mervyn King said in a foreword to the central bank's annual report, published on Monday."

A bit meaningless, so if CPI fell from it's current 4.5% to 4.4% over the next two years, doesn't that still meet the above criteria?

Share this post


Link to post
Share on other sites

We all keep forgetting that the Bank of England's job is NOT to manage inflation. It is to manage inflation EXPECTATIONS.

Well another epic fail then. Having said that I think ther average briton truly won't wake up to this charade until their end of month bank balance has been obliterated just after buying the basics, expected or not.

http://uk.reuters.com/article/2011/06/29/uk-inflation-expectations-idUKLNE75S03K20110629

Inflation expectations for the next 5-10 years surged to 4.1 percent from 3.5 percent, reaching the highest level since the survey began in late 2005, Citi said.

Share this post


Link to post
Share on other sites

We all keep forgetting that the Bank of England's job is NOT to manage inflation. It is to manage inflation EXPECTATIONS.

Which are currently around 3.9% are they not? So they are not doing a very go job at that either...

Share this post


Link to post
Share on other sites

When the rates go back up and inflation refuses to drop they'll have a shock.

They are simply just avoiding accepting that when rates rise the banks are going to have to pay for their past.

He'll be laughing as he sits back and enjoys his index linked retirement.

Of course when they put up rates it will refuse to drop as someone has put interest rates in the inflation basket....

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 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%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.