Wednesday, June 22, 2011

‘Balance’ Swung Back

New Bank of England member votes to keep rates on hold

Former Goldman Sachs economist Ben Broadbent voted with the majority of the Monetary Policy Committee (MPC). It means he has broken with the voting record of his more hawkish predecessor, Andrew Sentance, who had been backing a half-point rate rise since February. Mr Broadbent was an "unknown quantity" when he was appointed, according to BBC economics editor Stephanie Flanders, with much speculation over which way he would vote. But with his hand now revealed, the balance of the committee has swung back towards the doves.

Posted by ontheotherhand @ 12:09 PM (2075 views)
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15 thoughts on “‘Balance’ Swung Back

  • Ooooh here comes Doris with the tea. Doris makes lovely tea. How do you take your tea Ben? Milk and sugar? Thanks Doris. Oh, Doris, plug that printer in to warm up on your way out would you – there’s a love.

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  • orcusmaximus says:

    Gosh. A dove put in to replace a hawk. Who could have foreseen it? Oh – everyone on this site!

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  • I blame this shadowy Doris figure.

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  • Bank of England have lost credibility

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  • little professor says:

    Now there’s a surprise. Who would’ve thought replacing the only MPC member with a spine with an arch-dove Goldman Sachs stooge would lead to a change in the voting balance?

    Everybody knew this was going to happen, except it seems the BBC. This was the whole point of the new appointment

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  • letthemfall says:

    Wealthy ex-banker votes in the interests of wealthy bankers everywhere. Who’d ‘ave fought it.

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  • So Goldman Sachs told our Govt to appoint their man and they obeyed .

    Anyone know what Andrew Sentance moved on to ?

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  • Simon – Andrew Sentance is still at BoE. But now wears a wig and thick tights and goes by the name of Doris.

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  • orcusmaximus says:

    @Simon – Andrew Sentance has been fed to the alligators.

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  • Anyone else thinking about moving their money into comodities like gold if there is signs of more QE, I dont want to get caught out like last time.

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  • We're All In This Together says:

    Hawks, doves and poodles, but mostly invertebrates

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  • mark wadsworth says:

    Oh come off it, Sentance was in it just like the rest of them, he was just the Bad Cop to the others’ Good Cop, they have to have a minority of token hawks on their table tennis and tea drinking team to give them “credibility”.

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  • Alas, you are right, timmy t @ (1). Gold up, and a new high before much longer, I suspect.

    Devaluation it is then! A race to the bottom with lots of technical charts and obfuscation to kid the public that everyone is “doing the right thing”.

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  • orcusmaximus says:

    @lmark wadsworth

    If it is a conspiracy to give the pretence that they are considering rate rises, just to keep our creditors happy, then they would have appointed another token hawk.

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  • mark wadsworth says:

    Orcus – sure they want to keep creditors happy, but remember that if you own UK government bonds and interest rates go up, the market value of your bonds goes down. Once you’ve locked into an interest rate, you want rates to go down, and the one-off fall in market value is a bigger shock than the longer term erosion via price inflation.

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