Wednesday, May 14, 2008

Situation is truly precipitating

BOE Sees Inflation Accelerating, Requiring `Number' of Letters

The Bank of England said that inflation will accelerate, requiring ``a number'' of letters of explanation from Governor Mervyn King to the government and hindering policy makers from cutting interest rates further. The central bank's forecasts show inflation will exceed the government's 3 percent upper limit for ``several'' quarters. The bank said that the inflation will overshoot the 2 percent target in two years if it cuts the benchmark rate to 4.5 percent in 2009, as investor predict" And in addition BoE will have to run the printing press to avoid banking collapse and finance growing public spending, I am afraid the currency will weaken much further, probably Euro parity is not a too remote possibility

Posted by confused76 @ 11:29 AM (424 views)
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