Wednesday, September 14, 2016
Maybe not inflation
Article suggests that the sudden growth of the money supply will result in inflation, and that the BoE rely on consequences of Brexit instead of rate rises. However, imo, " But they suddenly engaged in a reverse ferret, increasing their holdings of cash by an annualised 70pc over the past three month" the dash to cash by fund managers, or this kind of static creation of cash from financial instruments, could also mean that people are getting ready for an across the board drop in prices and want to be ready. As has been reported generally, the BoE is running out of easing measures. Anyway I don't know but it looks like whichever one we end up with of the two alternatives is coming up soonish.