Thursday, May 31, 2007
There is little appreciation of the strength of the inflationary forces with which we are now wrestling
Time for Mervyn King to admit that rates must hit 6%
... he has consistently warned that we are leaving behind a “nice decade” for something not so nice......Few are expecting, still less want to hear, a message about interest rates needing to rise to 6% to bring this particular party to an end. But this is the message that the Bank of England governor has to deliver...
Posted by yellerkat @ 01:55 PM (1 views)
One thought on “There is little appreciation of the strength of the inflationary forces with which we are now wrestling”
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sovietuk says:
“One is the persistent strong growth in money supply both here and across the world, which central banks have now had to address through monetary tightening. Another is the switch in the “China effect”: as Chinese labour and production costs have risen, its powerful economy has crossed over to being an inflation exporter. ”
Oh dear Oh dear, what a total and absolute mess the country is in. Just reaching 6% is a bit optimistic. What happens as inflationary pressures in in the far east and globally intensify? Think twice about mortaging/remortaging a large amount, the MPC will be powerless to save you this time round.