Tuesday, June 29, 2010
Rates to rise soon……
Bank of England starts to dust off its inflation-fighting credentials
On Tuesday, we got an answer of sorts. Paul Fisher, the Bank's markets director, published remarks he made in Liverpool in a speech given on June 14. They appear to show a determination to raise rates "should it appear likely that inflationary pressure is sustained at a higher level into the medium term".
Posted by mark @ 09:16 PM (1240 views)
3 thoughts on “Rates to rise soon……”
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paul says:
Rubbish. By the time the rate decision comes about in a couple of weeks, the conversation will have moved to ‘double dip recession’ and ‘housing market downturn’ and hey presto! rates will stay the same at their unprecedented low level.
This has been going on for years now – two weeks either side of the rate decision and there’s hawkish talk and stern warnings abouyt inflation. Then every month, during the rate decision week, the media changes direction after an MPC committee member says “recession … boo!”. And the press fall for it each month like dribbling simpletons.
And that, boys n’ girls, is how we found ourselves at the sharp end of a financial crisis. Simple central bank monetary mismanagement.
peter says:
HAHAHAHAHAHA!
The Bank of England doesn’t have any inflation fighting credentials to dust off.
The whole idea of a central bank is to CREATE inflation, which amounts to a hidden tax whereby the spending power of people’s savings is destroyed. To see how this works, just think what £1 would have bought in 1910 – and what you would be able to buy today.
If anyone wants to look at this a bit further, I’d suggest “The Mystery of Banking” and “The Case Against the FED” by Murray Rothbard. You can download them free at the Mises Institute website.
Crunchy says:
Well said peter.
Making sense of history.
NO CHANGE.