Jump to content
House Price Crash Forum
Sign in to follow this  

" Central Bank Was For Now Not About To Change Tack Or Cut Interest Rates "

Recommended Posts


Wednesday September 12, 10:41 AM

King says moral hazard issue for c.banks
LONDON (Reuters) - The latest market turmoil has been caused by a mispricing of risk and central banks need to balance moral hazard against a possible shock to the financial system, Bank of England Governor Mervyn King said on Wednesday....../
"Unless they (extra funds) were made available at an appropriate penalty rate they would encourage in future the very risk-taking that has led us to where we are."
Economists said this showed the central bank was for now not about to change tack or cut interest rates unless the market turmoil started to hurt the real economy.

Looks like Merv has been reading the VI ramping lately and has decided the market can handle a few more hikes? After all rents are rising to "record levels," "sheeple have plenty of dosh to save," and "HPI has accelerated to 2%." With such huge inflationary pressure building surely a decision to stand pat on IR would prove fatal to the bank's remit?

Foot. Shot self. In.

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.

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.

Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 356 The Prime Minister stated that there were three Brexit options available to the UK:

    1. 1. Which of the Prime Minister's options would you choose?

      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

  • 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.