Thursday, January 7, 2010

Shhh! Wait till after the election!

Rate hikes looming amid inflation fears

Fears of interest rate hikes intensified after reports showed the UK is running one of the highest inflation rates in the developed world, fuelled by rising energy prices - and that households are braced for further acceleration. Britain's Consumer Prices Index is the highest in the G7 at 1.9% and nearly quadruple the euro area's 0.5%. The CPI could leap to 2.8% this month, according to estimates from Henderson Global Investors - in part thanks to widespread increases in prices of commodities including food and fuel.

Posted by little professor @ 10:55 PM (1826 views)
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3 thoughts on “Shhh! Wait till after the election!

  • And how did inflation get so high? The Bank of England studiously ignoring inflation.

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  • little professor says:

    Stoking, rather than ignoring inflation.

    It was a conscious decision to promote inflation, not a side effect. They knew the only way out of the debt-laden mess we were in was to inflate their way out of it, screwing all savers in the process.

    Just bought another 10k of index linked bonds. Let’s get ready for the ride.

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  • Ooh! The UK’s inflation rate is a shocking … wait for it … 2%!!! In case anyone hadn’t noticed there is still a credit crunch on, which means low demand. Energy prices are rising but they are rising all over the world. Perhaps here they are more directly passed on to consumers because of the horrible everything-for-big-business ideology of our government? The UK govt is not doing anything to inflate and here is why
    http://blogs.ft.com/maverecon/2009/09/what-can-be-done-to-enhance-qe-and-ce-in-the-uk-and-who-decides/
    all it is doing is keeping interest rates low to try to avoid a housing market collapse via distressed sales before the election.

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