Posts Tagged ‘BOE’s’
Risks include:
Sovereign debt and associated imbalances
Unsustainable patterns of demand
VAT rise to 20% (!) on January 1…
So inflation’s not so bad, only 3.75%…rest easy in your beds, UK readers…
BOE’s King: What people used to think of as safe assets like sovereign debt are not so safe any more
Blimey Merve, steady. Don’t give the game away. You’ll have us all in a panic.
Bloomberg reports:
UK inflation will fall well below 2% target
Low wage growth, spare capacity will lower inflation
CPI excluding currency effects, VAT, commodities is “low”
More worried about downside house price risks than upside
Mkt expectations of rate hike doesn’t mean it will occur
External risks to CPI won’t offset domestic drag
Weak pound versus euro and European demand are inflation [...]
Yesterday you had Bean talking more QE; today you have Sentance again calling for a rate hike.He say a quarter point hike would be a good starting point.
Elsewhere, Berlusconi has survived his no confidence votes…
Has not changed mind on need for further monetary easing in UK
UK budget cuts will cut household consumption
Says his growth forecast meaningfully below the majority of the MPC
It’s worth noting that the last lonesome dove on the MPC, Danny Blanchflower, turned out to be absolutely right in the end…
Looks like someone had a preview of the BOE head’s remarks before a parliamentary committee…
Here is a round-up of his remarks.
MPC dove Posen says don’t blame loose monetary policy for asset bubbles. Bubbles can just a easily form in emerging market countries with too-high interest rates by attracting capital inflows. Worries about asset bubbles are a poor reason for East Asian or other countries to keep currencies undervalued, he says.
I’m sure there will be a [...]
It won’t flag until unemployment comes down decisively in the western world
Wants a stronger banking system precisely so we can have a stronger economy
No comment thus far on monetary policy…
It’s a central bank smackdown!
BOE hawk Sentance has just come off the top turnbuckle and laid a haymaker on arch-dove Andrew Posen.
Doing more QE would give the wrong impression on the state of the economy, Sentance says, reiterating his belief that the BOE should be pushing rates up to more normal levels.
Cable has bounced from [...]
