Wednesday, Oct 11, 2006

Still looks like 5% in November

BBC: Inflation fears persist for King

Inflation is still a threat to the UK's economic health despite recent falls in the cost of oil, Bank of England governor Mervyn King has warned.

Posted by tyrellcorporation @ 08:52 AM (486 views)
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1. george monsoon said...

I dont believe it! words of wisdom from the BoE

( ppssst. ... looks like we will get the quarter point rise in November, otherwise, why would King have said anything..!)

Wednesday, October 11, 2006 09:24AM Report Comment

2. harold said...

So the reason for not raising in October was...?

More BoS than BoE.

Wednesday, October 11, 2006 09:29AM Report Comment

3. tyrellcorporation said...

I agree harold, they're playing a weird game at the moment. With everything seemingly bouyant and rates rising across the globe, why the hesitation? They must think that beneath the gloss, hype and froth, the economy is pretty unstable - it is built on quicksand after all!

Wednesday, October 11, 2006 09:35AM Report Comment

4. C'mon Correction said...

It's just talk - it's words from King to shore up Sterling. I've just looked and sure enough sterling is up already on yesterday. This is happening time and again. Why the currency markets can't see the spin and talk by now I don't know.

Surely our economy is not as stable as we're instructed it is by the goverment? - Only growth on the tick, that's all we got.

Wednesday, October 11, 2006 10:21AM Report Comment

5. Bfskinner said...

i think the BoE may have just given in to the pressure of expectation. if the market is jittery and built on quicksand then an 'enexpected' rise may have caused more damage. given that most so call pundits expected a definite rise in november a pre-emptive rise in october may have scared the market as people would be scared that novembers 'definite' rise may have still been on the cards.

Although none of this should concern the BoE. if inflation needs controlling it needs controlling. I agree with the above posts. if rates need to rise in november based on what we know already in october, then why wait indeed? on the flip side, if inflationary pressures are such that we can wait a month anyway then why signal the raise?

I think they have finally realised that not only was last years cut a mistake, but they have waited too long to reverese it, thus exacerbating the impat of the rise(s) when they do come


Wednesday, October 11, 2006 10:42AM Report Comment

6. sovietuk said...

I have to admit watching that Mervyn King- 'Student Tuition fee causing inflation' speech back in the summer he did look like a frightened mouse being manipluated by a higher authority. There seemed to be someting 'wooden' and insincere about the speech.

Wednesday, October 11, 2006 10:55AM Report Comment

7. holding out said...

I read somewhere that mervyn is highly regarded internationally because he talks a good inflation policy without actually doing anything. If you look at the last two years all that has happened is that there have been two 0.25% adjustments which have cancelled each other out.

I invested in some NZD a couple of months back as the base rate is 7.25% in NZ - which gives a good return. At the time it was approx $3 to 1. Now it is more like $2.8 - I just wish I'd done a shed load!! The point being that against asian/australasian currencies the is down of late.

Wednesday, October 11, 2006 11:35AM Report Comment

8. kpjcomp said...

Maybe King knows the CPI is just a massive Joke!!.

This thing I don't understand is that it's banks who will have the most too loose during high inflation, so it's crazy there not trying to nip it in the bud A.S.A.P.

Wednesday, October 11, 2006 11:49AM Report Comment

9. paul said...

I think he's worried about confidence in sterling.

We were right - the refusal to raise this month was a mistake he's trying to correct.

Wednesday, October 11, 2006 12:32PM Report Comment

10. Cstanhope707 said...

You watch my bet is that the minute crash Gordon is safely in number 10 they will start rapidly raising the rates. This is all about keeping everything afloat until that time, ask Normal Lamont about who gets blammed when IR start spiralling upwards.....

Wednesday, October 11, 2006 01:04PM Report Comment

11. bidin'matime said...

Also why Bliar stresses that the economy is all down to Gordon! If he can make his exit before the sh*t hits the fan, then he's got two layers of 'not me guv..'.

Wednesday, October 11, 2006 01:20PM Report Comment

12. george monsoon said...

Yes, definately a mistake not to raise rates. The longer the BoE keep rates this low, when all other nations are raising them to combat inflation will cost us dearly.

Wednesday, October 11, 2006 01:23PM Report Comment

13. harold said...

Come to think of it, when's Mervyn due to retire? Just wonder if he's also doing a 'Greenspan'; that is, having a party while in charge and leaving his successor with the job of cleaning up the mess?

Wednesday, October 11, 2006 01:23PM Report Comment

14. indiablue19 said...

Exactly my own thought. This is all staging for GBs ascension to the throne. That's all that matters in the equation. Everything must be kept afloat, however tenuously, to maintain the image for the voters of property going up and up, at least until His move is made into #10 and then you'd better batten down the hatches because the economic disaster will be on fast forward.

Wednesday, October 11, 2006 01:23PM Report Comment

15. Gay Joe said...


Wednesday, October 11, 2006 04:59PM Report Comment

16. Northernlad said...

all....remember in a few years who caused all the mess!

Wednesday, October 11, 2006 05:41PM Report Comment

17. bidin'matime said...

Yes, Northernlad, but it will be just Dave Cameron's luck to inherit it at the next election - if I was him, I'd be thinking about sitting this one out!

Thursday, October 12, 2006 07:59AM Report Comment

18. inbreda said...

I must admit - if it weren't for the fact that party leaders are egomaniac power hungry narcissists I wouldn't be surprised if they did sit out the next election.

Not only are they inheriting a rotten economy, but an illegal war that has killed over half a million and that seems impossible to step away from.

Blair has not only ruined the economy, he has made the world a much more dangerous place.

Thursday, October 12, 2006 10:44AM Report Comment

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