Monday, August 2, 2010
High house prices = ‘recovery’
Inflation targetting appears to have beean abandoned, according to the Guardian: "Predictions of a second monthly rise in US unemployment coupled with reports of slower growth in the eurozone, China and Japan are likely to persuade the Bank of England's monetary policy committee to keep interest rates at 0.5% when it meets on Thursday. Weaker than expected UK house prices and exports, especially to the eurozone, are also expected to overcome doubts about the committee's policy of maintaining historically low rates." I will leave to the reader to count the number of times housing is mentioned in the article compared with the word 'inflation'.