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GloomMonger

Boe's King Set To Go Out On A High!

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http://uk.news.yahoo.com/boes-king-set-offer-good-news-final-forecast-073907172.html#6ktsptn

Bank of England chief Mervyn King should be the bearer of some good news on Wednesday in his final forecasts before handing the reins to Mark Carney, even if the British economy remains far from healthy.

After repeatedly having to cut its growth outlook and lift its inflation forecasts since the financial crisis, the central bank looks set to do the opposite in its latest Quarterly Inflation Report.

Economists polled by Reuters last week expect the bank to forecast that inflation will peak at 3.0 percent later this year, below the 3.2 percent predicted three months ago.

Most also expect the Bank to bring forward the date when it expects inflation to return to the 2 percent target, following a recent slight strengthening of sterling and a drop in oil prices, after breaching the target for most of the past five years.

Further changes are likely to come with the arrival of Carney, who was poached from the Canadian central bank by Chancellor George Osborne. Carney has championed making long-term commitments to low interest rates, something the Bank under King has opposed

Perhaps he could also raise interest rates. No, thought not.

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Corrected for them:

Bank of England chief Mervyn King should be the bearer of some good news on Wednesday in his final forecasts before handing the reins printer to Mark Carney, even if the British economy remains far from healthy.

Further changes are likely to come with the arrival of Carney, who was poached singled out from the Canadian central bank by Chancellor George Osborne.

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I thought he was going out on a record low.

Yes. How much is a bank of england forecast worth? Carney has a tough job as an outside change agent.

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A housing bubble, a great depression and the insolvency of most British banks doesn't seem like much of a high.

Did the man make a single good decision in his time as planner in chief? I can't think of one.

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A housing bubble, a great depression and the insolvency of most British banks doesn't seem like much of a high.

Did the man make a single good decision in his time as planner in chief? I can't think of one.

Not one, even going back to his time at LSE. The least capable governor of the Bank in its 300 year history. And still to the very end the brass necked hubris of the man, trying to pass off the idea that he turned the economy round before his departure.

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nice of Merv to tell us all what a GREAT job he did for us.

champagne and inflation linked early retirement all round*

*actually not all round. just the made men.

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I wish Norman Lamont had left office with inflation at these outrageously high levels.

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There wasn't much good news in the wages figures and indeed some very bad news. The average person may think that this is a lot more important than Mervyn King's spinning to the media.

Meanwhile in the real economy

Here we saw more evidence of a troubling feature of the UK economic landscape and it came from the statistics on the labour market.

Between January to March 2012 and January to March 2013 total pay rose by 0.4% (the lowest growth rate since March to May 2009) and regular pay rose by 0.8% (the lowest growth rate since comparable records began in 2001).

So we see that real incomes are falling ever faster because they are now falling at an annual rate of either 2.4% (using the Consumer Price Index) or 2.9% (using the Retail Price Index). As we wonder where Mervyn King’s improvement in demand will come in such an environment we now have a further facet to one of the main themes of this blog. Will nominal wage growth go negative?

Also we have other themes at play where the concept of negative numbers have emerged much more frequently -growth and interest rates to name just two-so we can observe the the new economic landscape may feature as many negative as positive numbers.

There is a possible reason or excuse in the fact that some bonus payments were apparently delayed but even so we are facing a weakening series of numbers. Indeed the raw data for March alone shows something quite chilling and those of a nervous disposition might like to look away now.

March 2013 average weekly earnings £463 per week

March 2012 average weekly earnings £466 per week

Yes they did actually fall! Maybe the March move overstates things a little due to the bonus influence but I for one will be waiting tapping my foot for the April numbers.

http://www.mindfulmoney.co.uk/wp/shaun-richards/mervyn-king-gives-the-uk-a-retirement-present-of-falling-real-and-now-also-nominal-wages/

Thanks for nothing Mervyn!

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There wasn't much good news in the wages figures and indeed some very bad news. The average person may think that this is a lot more important than Mervyn King's spinning to the media.

http://www.mindfulmo...-nominal-wages/

Thanks for nothing Mervyn!

If only he'd left us with nothing rather than £10 trillion of debt!

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  • 243 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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