Wednesday, Oct 11, 2006

BoE on another planet

Guardian: Demanding better wages will push up interest rates, says King

The Bank of England, despite getting paid 150,000 for 30 hours work spread over a year, want everyone to stop asking for money. Apparently it doesn't matter if you're paid enough to survive or not - if you ask for more money, they'll have to raise interest rates - and you wouldn't want that!

Posted by inbreda @ 02:01 PM (615 views)
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13 Comments

1. george monsoon said...

Im putting in my request for a wage rise as we speak.

Wednesday, October 11, 2006 02:49PM Report Comment
 

2. inbreda said...

Sorry to repeat myself - but I really cannot beleive the cheek of a man who earns so much to suggest that everyone else should put up with less.

I'd write him a letter expressing my opinions, but I don't think the price of a stamp justifies a letter that simply says "Oi! King! F**Off!"

Wednesday, October 11, 2006 03:11PM Report Comment
 

3. paul said...

Yes, I love how he's tried to turn the problem back on us to compensate for the MPC's lack of foresight.

Wednesday, October 11, 2006 03:35PM Report Comment
 

4. tyrellcorporation said...

At least lets be happy he's recognising that the're's a problem - this is proof indeed that they're worried about inflation and wage inflation. Him commenting on it may well have the opposite desired effect too as people start to be concerned they're being done over.

Wednesday, October 11, 2006 03:38PM Report Comment
 

5. Inflation Is Eating My Savings said...

Ladies and gentlemen- it has been fun, I have been addicted for 6 months now. I have learnt a lot. Thank you.
I have also seen the M4 data. As I have no insight into the stock market and no desire to buy gold, I am now buying a house.
I haggled and got a nice old fashioned 3 bed for 140k in Fife. Apparently Fife is booming- you should all have a look. Now I am a VI.
Good luck.

Wednesday, October 11, 2006 04:35PM Report Comment
 

6. C'mon Correction said...

I had to read this twice to believe my eyes. The Bank of England have sat on their hands whilst house price inflation has rocketed, and have given no foresight to problems runaway price inflation causes.

Now houses are at record levels of un-affordability and people have to earn more, do they really believe people just to sit there and take it !!!!!

I suggest everyone push for all they can when discussing pay reviews, playing the "I can't get on the housing ladder" card should be encouraged - people might start to wake up to the problem.

Wednesday, October 11, 2006 04:38PM Report Comment
 

7. Manjip said...

I love how he spurts on about people pushing for pay rises because of Energy Prices, open your eyes Merv what about HPI may be people want more money so they can buy a house.

Wednesday, October 11, 2006 04:57PM Report Comment
 

8. indiablue19 said...

Talk about wanting your bread buttered on every side at once. What a flaming nerve. Next he'll be suggesting we all open more savings accounts.

Wednesday, October 11, 2006 05:23PM Report Comment
 

9. holding out said...

This is the same story as "King warns on inflation despite fall in oil prices" - of course being the Grauniad it has to be spun in a different way

Wednesday, October 11, 2006 05:42PM Report Comment
 

10. Soothsayer said...

HaHa.. Mr King should approach his boss for a salary cut...that way us lesser mortals can get our measely salary rises to compensate and there will no inflation

Wednesday, October 11, 2006 08:35PM Report Comment
 

11. P. Doff said...

Well, I've been asking for a pay rise for the last 3 years and the boss's standard response is 'the Company can't afford it'. That's usually just before he goes out and buys himself a new 35K+ car each year end (and he now has three of them). Doesn't exactly promote loyalty does it!!!

I think I will suggest a new response to payrise requests - 'The BoE wants me to help keep inflation down' - it might be more believable.

Wednesday, October 11, 2006 09:37PM Report Comment
 

12. Von Mises said...

It's too late, the inflation genie is out of the bottle now. Next years pay rises for the private sector are forecast to be between 4.5 and 5%. With prices rising and above inflation wage settlements the inflationary spiral is well and truly underway and will require the strong medicine of further interest rate rises.
Combine this with a likely recession next year in the retail sector and we are looking at stagflation. The watch the asset bubbles burst!

Wednesday, October 11, 2006 11:05PM Report Comment
 

13. indiablue19 said...

And on further thought -- how completely brilliant; afterall now bankers can concoct a mortgage programme at twenty times salary instead of ten or fifteen times. On a collision course with tragedy this bunch.

Thursday, October 12, 2006 11:03PM Report Comment
 

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