Thursday, January 11, 2007
If Stirling Falls, Inflation will Rise
Today the MPC put interest rates up 0.25%. If stirling falls, imported goods will cost more. This is a very readable piece from MoneyWeek which suggests the fall of stirling is imminent. A good quote from the article is " ... the UK economy looks uncannily like late '80s Japan Inc today...only in miniature and minus the trade surplus. " Can we recall a previous time when the £'s fall was preceeded by a fall in the US $?