Friday, Nov 17, 2006

Bank of England expects inflation to rise further but has no plans for another interest rate increase

Reutrers: BoE's King-Inflation to rise before falling to target

British inflation will likely rise further above its 2 percent target in the near term before falling back to meet it, Bank of England Governor Mervyn King said on Thursday in a speech that repeated comments in the Inflation Report.

Posted by jellycaster @ 05:11 PM (440 views)
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1. tyrellcorporation said...

Have a year off lads! All you need to do is turn up on 12 days throughout 2007 and pick up 130k... Where did I go wrong?!?

Friday, November 17, 2006 07:36PM Report Comment

2. Nohpc said...

At last they are looking further forwards into the future. It does make sense if you think about it, especially as britains money supply has apprarently ran out inflation cannot continue upwards as people will have no money. This is sweet news for home owners

Friday, November 17, 2006 10:31PM Report Comment

3. harold said...

"Bank of England expects inflation to rise further but has no plans for another interest rate increase"

Jellycaster, it's nice of you to share your crystal ball gazing skills with the rest of us, however the report actually says "...but there is significant uncertainty about the outlook for inflation." So what is it that you know that City analysts don't - or are you talking out of your back-side? Don't post articles with fatuous and misleading titles.

Nohpc, how this is "sweet news for home owners" is beyond me. Seems like the NuLabour spin merchants may have got to you. And just what is the following supposed to mean!? " britains money supply has apprarently ran out inflation cannot continue upwards as people will have no money".

Saturday, November 18, 2006 01:35PM Report Comment

4. paul said...

Inflation is good news for homeowners. In fact inflation is good news for any net debtor.

Inflation is above target now but the bank is doing nothing about it, and as a massive net debtor, the government is quite happy with the current status quo.

Saturday, November 18, 2006 03:02PM Report Comment

5. inbreda said...

What planet are you lot on?!?!?!

Nohpc what do you mean by "britains money supply has apprarently ran out "????

The money supply has been running at 14%, and interest rates will soon have to follow as the government has no other way of reducing its debts. Certainly not if it wants to continue touring the world killing people.

And paul - yes inflation will wipe out the value of peoples debts, but that is of course assuming that they are able to hold on to the assets they have bought with that debt. Everyone is moaning about a 0.25bps increase - can you imagine many people NOT being repossessed if interest rates go up to say 7%? 8%? 12%? And of course if we remain in this alleged low inflation environment then nobodys debts will be wiped out. Which of course means that it will take a lot of people a long long time to actually own what they've bought.

It's a lot easier to pay off debts when interest rates are low - and yet what has everyone done? Got themselves into so much debt that they will feel real pain when rates go up.

Saturday, November 18, 2006 05:57PM Report Comment

6. jellycaster said...

Harold - 'no plans' doesn't mean 'definitely won't', it simply means... erm... 'no plans' ...which is the thrust of this article. Please don't flatter me by assuming I think have the knowledge or confidence to make predictions like that.


"Financial markets scaled back their expectations for monetary tightening next year after Wednesday's Inflation Report signalled policymakers are in no hurry to raise rates again after last week's hike to 5 percent.

A Reuters poll taken after the quarterly growth and inflation forecasts showed analysts expect rates to stay on hold throughout next year, although there was still a risk of another hike if wage settlements pick up in the New Year pay round."

Sunday, November 19, 2006 06:33PM Report Comment

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