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Realistbear

B O E's Katie Barker: No Wage Pressure

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http://www.tiscali.co.uk/news/newswire.php...y_template.html

Bank's Barker: Unlikely to see much wage pressure

26/04/2006 07:23

LONDON (Reuters) - Bank of England Monetary Policy Committee member Kate Barker said on Wednesday she was optimistic that short-term inflation pressures will probably not feed through to wages and inflation had tended come in under the bank’s expectations recently.
"But more optimistically, I think that we are probably not going to see a great deal of upward pressure on wages. Inflation in fact over the past few months has tended to come in a little bit lower than we expected. Balancing these things out, that’s what’s led me to vote to leave rates on hold over the last few months."
But asked about where rates were going to go, she said: "I’m personally finding it quite a difficult decision."

Ivory tower blindness? When people fear for their jobs they tend not to pressure for pay rises, especially as there are thousands of E European immigrants to do the job for less. But, the upside is that lower wages means more to borrow to buy a house or pay the rent. A sure sign of recession creeping in unnoticed by Gordon's "Miracle Workers."

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Are you predicting a rate cut RB?

I think the BoE will resist a rate hike until the pressure mounts following the BoJ moves. As confidence in the UK economy erodes, sterling will come under pressure forcing the BoE to raise against a backdrop of deflationary pressures. The government will sell it as a belt tightening period where some sacrifices will have to be made. The blame will fall on "world inflationary pressure" notably from Japan and China.

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I think the BoE will resist a rate hike until the pressure mounts following the BoJ moves. As confidence in the UK economy erodes, sterling will come under pressure forcing the BoE to raise against a backdrop of deflationary pressures. The government will sell it as a belt tightening period where some sacrifices will have to be made. The blame will fall on "world inflationary pressure" notably from Japan and China.

With that slippery answer you should be a politician.

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  • 302 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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