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Last Hun Standing

Long Term Inflation Rate Expectations - 6.6%?

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An article in the Telegraph got me thinking.

http://www.telegraph.co.uk/money/main.jhtm...1/cnroyal21.xml

"The group must contribute up to £750m annually to fund the scheme and reduce the £5.6bn deficit as the purchasing power of the sum will decline with time. A £750m payment in 17 years' time, for example, will be worth about £250m in today's money."

If I do the maths correctly I make the implied inflation rate average for 17 years around 6.66% annually, to convert £750m to £250m in 17 years time.

i.e. 1.066^17 * 250 = 750.

Looks like they don't believe in the miracle economy and the BoE's independence either then....

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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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