Sunday, March 30, 2008
The inflation target has become a joke
"The Bank voted against another rate cut this month on grounds that inflation was running well above the 2% target, driven by rising food and energy costs. But Fionnuala Earley, Nationwide's chief economist, said the Bank should act in April to ease lending conditions and breathe life into the housing market" after fudging real inflation data with the CPI, now the CPI too is running away, so what you need to do? cut? in the words of Diana C of Lombard Research, the biggest problem the BoE has is to cool this overheated economy. I hope Mervyn and co make the right choice next week. Look at the 59 comments to the article, all say the same. God Save The Pound!