Thursday, September 11, 2008

The public have no faith in the MPC sticking to, and achieveing, what they are mandated to do.

Britons expect prices to keep rising

...The survey is closely watched by the Bank’s Monetary Policy Committee which sets interest rates. Bank Governor Mervyn King, who will answer questions on inflation on Thursday morning before the Treasury Select Committee, has said that it is necessary to set monetary policy that not only addresses inflationary pressures today but expectations of it in the future as well... If this is to be believed it can only mean strong interest rate hikes.

Posted by another alan @ 12:43 PM (529 views)
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2 thoughts on “The public have no faith in the MPC sticking to, and achieveing, what they are mandated to do.

  • What the MPC do with interest rates will have very little impact on the recession, except to help or hinder those with huge debts, such as home owners and small business. It won’t really help large businesses, because they will just put up prices to compensate, etc.

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  • Mikelivingstone says:

    The key statement is in the headline.

    “Britons expect prices to keep rising” = Inflationary expectations which therefore require higher interest rates.

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