Friday, Oct 20, 2006

The MPC may be more independent and cleverer then previously thought

MoneyWeek ;-): Why the Bank of England is turning more hawkish

A summary of the UK's economic situation which suggests an Interest Rate hike in Nov 06 might not be the peak of the cycle. I would be grateful if "NpHPC" read this one and comment.

Posted by talking rot @ 10:37 AM (478 views)
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13 Comments

1. kpjcomp said...

This is on the BBC->

http://news.bbc.co.uk/1/hi/uk/6068568.stm

Price of running a new car has only gone up 22% in 1 year, what's all this rubbish about high inflation and the CPI being a load of rubbish.

Friday, October 20, 2006 11:13AM Report Comment
 

2. sovietuk said...

Article says

" But with inflation staying stubbornly above target, the housing bubble still inflating and money supply growth dangerously high, more unemployment is likely to be the price we pay to get the economy back into shape. "


In other words sod the ordinary bloke in the street, make his housing more expensive and make his job more insecure.


Friday, October 20, 2006 12:10PM Report Comment
 

3. Tom said...

quote: "a slowing economy accompanied by persistent price inflation is the last thing we need."
Sounds like stagflation.

Friday, October 20, 2006 01:05PM Report Comment
 

4. bidin'matime said...

"We suspect that the two props of Browns economy the public sector spending binge and the low rate-fuelled credit bubble are set to collapse at the same time. Unfortunately its the taxpayer who will pick up the bill for this; watching Browns name become mud will be scant consolation."

Nuff said

Friday, October 20, 2006 01:54PM Report Comment
 

5. sovietuk said...

Article also says

"Theres now talk that Brown might once again extend his definition of the economic cycle so he can meet his self-imposed golden rule of balancing the budget over the cycle".

Or short for "it's not ever going to get balanced because by the time we've been kicked out of office somebody else we'll have to clear up all the sh*t we've left behind"

Friday, October 20, 2006 03:04PM Report Comment
 

6. denzil said...


>>"Theres now talk that Brown might once again extend his definition of the economic cycle so he can meet his self-imposed golden rule of balancing the budget over the cycle".

Love it! I have a self imposed budget of 100 per month on cider. I have spent 300 this month but am I bothered? No of course not because I have extended the cider drinking cycle to one year. I shall enter my local this evening with a clear conscience. Seriously though, how can anyone who is so blatantly fiddling economics be considered for PM defies belief.

Friday, October 20, 2006 03:26PM Report Comment
 

7. Chillilizard said...

technical bit:

The quantity theory of money:
money supply x velocity = prices x number of transactions

So if money supply has gone up by 14.5%, and we are not buying more stuff, then surely prices will go up by 14.5%.

I wonder how they reconcile this report with the CPI? I also wonder if Brown every studied economics?

Friday, October 20, 2006 03:40PM Report Comment
 

8. inbreda said...

How anyone can be so obviously deceptive and yet work in an office with the trust of the general public is beyond me.

How he can claim a wage of any more than 12.50 per year and still sleep at night I'll never know.

Friday, October 20, 2006 04:06PM Report Comment
 

9. bidin'matime said...

Chillilizard

Absolutely - good to see some technical input - keep on posting.

Friday, October 20, 2006 09:27PM Report Comment
 

10. Nohpc said...

Nothing in that article is any suprise to me. I said I thought interest rates would peak at 5.5% Moneyweek seem to think 5.25%. I think the Olympics will fuel the economy to a certain extent as well as providing a job. Also they usually mention the fact that more people are in work as well as out of work and it is the people in work that are important as they are the house buyers, high street shoppers ect.
PS money week are a bunch of jokers. Have you seen the adverts they send out to you when you sign up to their newsletter?

Friday, October 20, 2006 10:28PM Report Comment
 

11. Mjchum said...

Fact is we're all getting poorer, due to taxation, regulation, persecution of industrious people and gloablisation. I here so many 'ordinary' people talking flippantly about huge sums of money. Only problem is those sums come after a minus sign.

Friday, October 20, 2006 11:35PM Report Comment
 

12. Rayman740 said...

Still gloomy these 'banging on the same sour drum' moneyweek chaps. Buy now, there is no collapse. (I say that having been told of a bidding war to buy a 400k house in Cornwall; property sold over asking price!

Saturday, October 21, 2006 08:09PM Report Comment
 

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