Monday, January 28, 2008

Thoughts of a Financial Engineer

UK rate cut vital to avoid slump, says MPC member

The British economy risks following the US into a slowdown unless interest rates are cut sharply in the next few months, one of the Bank of England's monetary policy committee members warns today. In an interview with the Guardian, Professor David Blanchflower said the Bank needed to learn from the US federal reserve and take pre-emptive action to prevent growth from stalling.

Posted by quiet guy @ 12:06 AM (954 views)
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5 thoughts on “Thoughts of a Financial Engineer

  • David Blanchflower *always* wants a rate cut. His voting record on the MPC plants him firmly in the rate-cutting camp. What’s his agenda, to support his American buddies?

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  • “he [Blanchflower] said “Britain is more dependent on the financial sector than is the case in the US. Also, the housing bubble is greater in the UK based on house price to earnings ratios.”

    He pointed to evidence that mortgage approvals – a key indicator of demand in the housing supply – had fallen by a third in the past year. While acknowledging that his MPC colleagues were right that high oil and food prices represented a threat of inflation, Blanchflower said the immediate priority was to stop the economy following the US into recession.”

    Blanchflower appears to implicitly equate the economy with the housing market. How crass. It’s nive to hear an MPC member actually acknowledge the “housing bubble”.

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  • Doesn’t he always????? – I wonder if he has a huge personal interest in devaluing the pound???? Just a thought.

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  • What a damned idiot, does he not realise that increased money supply causes inflation and that excessive credit and inflation is what caused this whole mess!

    Better to stay as is and see an ordered decline than delay the inevitable and see a deeper decent later. It is just tough that Governments, business and people were greedy and wasteful, now they must face reality!

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  • The only word in David Blanchflower’s vocab is ”CUT”

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