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gruffydd

Mpc's Sentance Goes V Hawkish On Uk Interest Rates

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http://www.bloomberg.com/apps/news?pid=206...&refer=home

Sentance, 49, and the Bank of England's eight other rate- setters are fighting the U.K.'s worst bout of inflation in more than a decade while trying to keep the economy clear of a recession. The former British Airways Plc chief economist indicated that for now, the inflation outlook is changing more quickly than the one for growth.

``It's not clear that the slowdown in the economy that has emerged so far is significantly sharper than we were projecting in the May inflation report,'' Sentance said. ``We may have to accept that the economy slows further, that we've got a few more difficult quarters in the real economy'' to get inflation back to the central bank's 2 percent target.

Edited by gruffydd

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Also singing from the same hymn sheet in sundays Financial Mail page 65, re "Inflation at a 16 year high"

Was Howard Archer of independent forecasting group Global Insight he said.

"Immigration coupled with higher unemployment is keeping the lid on pay claims."

They don't care about soaring CPI and RPI inflation as long as you're not getting a pay rise, they

like the fact you're just getting poorer by the day.

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http://www.bloomberg.com/apps/news?pid=206...&refer=home

Sentance, 49, and the Bank of England's eight other rate- setters are fighting the U.K.'s worst bout of inflation in more than a decade while trying to keep the economy clear of a recession. The former British Airways Plc chief economist indicated that for now, the inflation outlook is changing more quickly than the one for growth.

``It's not clear that the slowdown in the economy that has emerged so far is significantly sharper than we were projecting in the May inflation report,'' Sentance said. ``We may have to accept that the economy slows further, that we've got a few more difficult quarters in the real economy'' to get inflation back to the central bank's 2 percent target.

I've been following his record as he works part-time at my organisation and, outside MPC stuff, is focused on climate change politics/economics, which is one of my interests. Generally, he seems to have been quite sensible and bearish (eg hawkish in terms of interest rates) during his secondment. But he still shares collective responsibility IMHO for keeping IRs artificially low; and all this 'recession will bring down inflation painlessly and automatically' is just BS. Is it just me, or could we just replace these suits with a bunch of monkeys and get at least as good decisions? Actually, it seems like it's only relatively recently that the external MPC members have begun doing the rounds like they're rock stars or something. I think a bit more professionalism and collective responsibility would be preferable - I don't think we need to know every time one of them goes for a sh*t or even read the minutes of the debate. Perhaps they'd make better decisions if they didn't have to face their city colleagues after every meeting...?

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  • 396 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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