Sir Merv fails once again.
Discussion
Sir Merv fails once again.
They give honours for being the most hopeless central banker in the world? Once again Sir 'I'm a f
kwit who has as much chance of hitting a 2% target as Geoff Thomas has of an England Recall", the most incompetent man in public life fails to hit the target.
"UK Consumer Prices Index inflation held steady at 4.5% in May, new data shows.
It means the CPI rate has now overshot the Bank of England's 2% target for 34 of the past 40 months.
The Retail Prices Index (RPI) measure of inflation - which includes mortgage interest payments - was also unchanged at 5.2%, according to the Office for National Statistics (ONS).
But analysts said rising energy prices meant inflation was likely to resume its upward path in the coming months.
"With the announcement of higher utility prices coming through by the summer, there's a good chance we'll be looking at a 5% plus inflation rate by the autumn," said Peter Dixon at Commerzbank.
They give honours for being the most hopeless central banker in the world? Once again Sir 'I'm a f
kwit who has as much chance of hitting a 2% target as Geoff Thomas has of an England Recall", the most incompetent man in public life fails to hit the target."UK Consumer Prices Index inflation held steady at 4.5% in May, new data shows.
It means the CPI rate has now overshot the Bank of England's 2% target for 34 of the past 40 months.
The Retail Prices Index (RPI) measure of inflation - which includes mortgage interest payments - was also unchanged at 5.2%, according to the Office for National Statistics (ONS).
But analysts said rising energy prices meant inflation was likely to resume its upward path in the coming months.
"With the announcement of higher utility prices coming through by the summer, there's a good chance we'll be looking at a 5% plus inflation rate by the autumn," said Peter Dixon at Commerzbank.
Fittster said:
Sir Merv fails once again.
They give honours for being the most hopeless central banker in the world? Once again Sir 'I'm a fkwit who has as much chance of hitting a 2% target as Geoff Thomas has of an England Recall", the most incompetent man in public life fails to hit the target.
"UK Consumer Prices Index inflation held steady at 4.5% in May, new data shows.
It means the CPI rate has now overshot the Bank of England's 2% target for 34 of the past 40 months.
The Retail Prices Index (RPI) measure of inflation - which includes mortgage interest payments - was also unchanged at 5.2%, according to the Office for National Statistics (ONS).
But analysts said rising energy prices meant inflation was likely to resume its upward path in the coming months.
"With the announcement of higher utility prices coming through by the summer, there's a good chance we'll be looking at a 5% plus inflation rate by the autumn," said Peter Dixon at Commerzbank.
Might depend upon his remit?They give honours for being the most hopeless central banker in the world? Once again Sir 'I'm a f
kwit who has as much chance of hitting a 2% target as Geoff Thomas has of an England Recall", the most incompetent man in public life fails to hit the target."UK Consumer Prices Index inflation held steady at 4.5% in May, new data shows.
It means the CPI rate has now overshot the Bank of England's 2% target for 34 of the past 40 months.
The Retail Prices Index (RPI) measure of inflation - which includes mortgage interest payments - was also unchanged at 5.2%, according to the Office for National Statistics (ONS).
But analysts said rising energy prices meant inflation was likely to resume its upward path in the coming months.
"With the announcement of higher utility prices coming through by the summer, there's a good chance we'll be looking at a 5% plus inflation rate by the autumn," said Peter Dixon at Commerzbank.
The public one, or, the "behind the scene" one?
He still has his position and no rumours of his departure.
Should explain.
Fittster said:
Sir Merv fails once again.
They give honours for being the most hopeless central banker in the world? Once again Sir 'I'm a fkwit who has as much chance of hitting a 2% target as Geoff Thomas has of an England Recall", the most incompetent man in public life fails to hit the target.
"UK Consumer Prices Index inflation held steady at 4.5% in May, new data shows.
It means the CPI rate has now overshot the Bank of England's 2% target for 34 of the past 40 months.
The Retail Prices Index (RPI) measure of inflation - which includes mortgage interest payments - was also unchanged at 5.2%, according to the Office for National Statistics (ONS).
But analysts said rising energy prices meant inflation was likely to resume its upward path in the coming months.
"With the announcement of higher utility prices coming through by the summer, there's a good chance we'll be looking at a 5% plus inflation rate by the autumn," said Peter Dixon at Commerzbank.
For the benefit of the rest of us, what should he have done to hit those targets that he didn't do?They give honours for being the most hopeless central banker in the world? Once again Sir 'I'm a f
kwit who has as much chance of hitting a 2% target as Geoff Thomas has of an England Recall", the most incompetent man in public life fails to hit the target."UK Consumer Prices Index inflation held steady at 4.5% in May, new data shows.
It means the CPI rate has now overshot the Bank of England's 2% target for 34 of the past 40 months.
The Retail Prices Index (RPI) measure of inflation - which includes mortgage interest payments - was also unchanged at 5.2%, according to the Office for National Statistics (ONS).
But analysts said rising energy prices meant inflation was likely to resume its upward path in the coming months.
"With the announcement of higher utility prices coming through by the summer, there's a good chance we'll be looking at a 5% plus inflation rate by the autumn," said Peter Dixon at Commerzbank.
Caulkhead said:
Fittster said:
Sir Merv fails once again.
They give honours for being the most hopeless central banker in the world? Once again Sir 'I'm a fkwit who has as much chance of hitting a 2% target as Geoff Thomas has of an England Recall", the most incompetent man in public life fails to hit the target.
"UK Consumer Prices Index inflation held steady at 4.5% in May, new data shows.
It means the CPI rate has now overshot the Bank of England's 2% target for 34 of the past 40 months.
The Retail Prices Index (RPI) measure of inflation - which includes mortgage interest payments - was also unchanged at 5.2%, according to the Office for National Statistics (ONS).
But analysts said rising energy prices meant inflation was likely to resume its upward path in the coming months.
"With the announcement of higher utility prices coming through by the summer, there's a good chance we'll be looking at a 5% plus inflation rate by the autumn," said Peter Dixon at Commerzbank.
For the benefit of the rest of us, what should he have done to hit those targets that he didn't do?They give honours for being the most hopeless central banker in the world? Once again Sir 'I'm a f
kwit who has as much chance of hitting a 2% target as Geoff Thomas has of an England Recall", the most incompetent man in public life fails to hit the target."UK Consumer Prices Index inflation held steady at 4.5% in May, new data shows.
It means the CPI rate has now overshot the Bank of England's 2% target for 34 of the past 40 months.
The Retail Prices Index (RPI) measure of inflation - which includes mortgage interest payments - was also unchanged at 5.2%, according to the Office for National Statistics (ONS).
But analysts said rising energy prices meant inflation was likely to resume its upward path in the coming months.
"With the announcement of higher utility prices coming through by the summer, there's a good chance we'll be looking at a 5% plus inflation rate by the autumn," said Peter Dixon at Commerzbank.
Fittster said:
He should have let those organisations and individuals with too much debt face the consequences of their actions rather than trying to replicate the mistakes of Japan since the late 1980s.
Remind me of his position?Whilst I totally agree with your sentiment, there is no way the Governor would do what you describe.
Understand, once part of the system, whichever system, one has to support it.
Sorta Mafia, if you will.
Fittster said:
Caulkhead said:
Fittster said:
Sir Merv fails once again.
They give honours for being the most hopeless central banker in the world? Once again Sir 'I'm a fkwit who has as much chance of hitting a 2% target as Geoff Thomas has of an England Recall", the most incompetent man in public life fails to hit the target.
"UK Consumer Prices Index inflation held steady at 4.5% in May, new data shows.
It means the CPI rate has now overshot the Bank of England's 2% target for 34 of the past 40 months.
The Retail Prices Index (RPI) measure of inflation - which includes mortgage interest payments - was also unchanged at 5.2%, according to the Office for National Statistics (ONS).
But analysts said rising energy prices meant inflation was likely to resume its upward path in the coming months.
"With the announcement of higher utility prices coming through by the summer, there's a good chance we'll be looking at a 5% plus inflation rate by the autumn," said Peter Dixon at Commerzbank.
For the benefit of the rest of us, what should he have done to hit those targets that he didn't do?They give honours for being the most hopeless central banker in the world? Once again Sir 'I'm a f
kwit who has as much chance of hitting a 2% target as Geoff Thomas has of an England Recall", the most incompetent man in public life fails to hit the target."UK Consumer Prices Index inflation held steady at 4.5% in May, new data shows.
It means the CPI rate has now overshot the Bank of England's 2% target for 34 of the past 40 months.
The Retail Prices Index (RPI) measure of inflation - which includes mortgage interest payments - was also unchanged at 5.2%, according to the Office for National Statistics (ONS).
But analysts said rising energy prices meant inflation was likely to resume its upward path in the coming months.
"With the announcement of higher utility prices coming through by the summer, there's a good chance we'll be looking at a 5% plus inflation rate by the autumn," said Peter Dixon at Commerzbank.
Caulkhead said:
Fittster said:
Caulkhead said:
Fittster said:
Sir Merv fails once again.
They give honours for being the most hopeless central banker in the world? Once again Sir 'I'm a fkwit who has as much chance of hitting a 2% target as Geoff Thomas has of an England Recall", the most incompetent man in public life fails to hit the target.
"UK Consumer Prices Index inflation held steady at 4.5% in May, new data shows.
It means the CPI rate has now overshot the Bank of England's 2% target for 34 of the past 40 months.
The Retail Prices Index (RPI) measure of inflation - which includes mortgage interest payments - was also unchanged at 5.2%, according to the Office for National Statistics (ONS).
But analysts said rising energy prices meant inflation was likely to resume its upward path in the coming months.
"With the announcement of higher utility prices coming through by the summer, there's a good chance we'll be looking at a 5% plus inflation rate by the autumn," said Peter Dixon at Commerzbank.
For the benefit of the rest of us, what should he have done to hit those targets that he didn't do?They give honours for being the most hopeless central banker in the world? Once again Sir 'I'm a f
kwit who has as much chance of hitting a 2% target as Geoff Thomas has of an England Recall", the most incompetent man in public life fails to hit the target."UK Consumer Prices Index inflation held steady at 4.5% in May, new data shows.
It means the CPI rate has now overshot the Bank of England's 2% target for 34 of the past 40 months.
The Retail Prices Index (RPI) measure of inflation - which includes mortgage interest payments - was also unchanged at 5.2%, according to the Office for National Statistics (ONS).
But analysts said rising energy prices meant inflation was likely to resume its upward path in the coming months.
"With the announcement of higher utility prices coming through by the summer, there's a good chance we'll be looking at a 5% plus inflation rate by the autumn," said Peter Dixon at Commerzbank.
His job.
Fittster said:
Caulkhead said:
Fittster said:
Caulkhead said:
Fittster said:
Sir Merv fails once again.
They give honours for being the most hopeless central banker in the world? Once again Sir 'I'm a fkwit who has as much chance of hitting a 2% target as Geoff Thomas has of an England Recall", the most incompetent man in public life fails to hit the target.
"UK Consumer Prices Index inflation held steady at 4.5% in May, new data shows.
It means the CPI rate has now overshot the Bank of England's 2% target for 34 of the past 40 months.
The Retail Prices Index (RPI) measure of inflation - which includes mortgage interest payments - was also unchanged at 5.2%, according to the Office for National Statistics (ONS).
But analysts said rising energy prices meant inflation was likely to resume its upward path in the coming months.
"With the announcement of higher utility prices coming through by the summer, there's a good chance we'll be looking at a 5% plus inflation rate by the autumn," said Peter Dixon at Commerzbank.
For the benefit of the rest of us, what should he have done to hit those targets that he didn't do?They give honours for being the most hopeless central banker in the world? Once again Sir 'I'm a f
kwit who has as much chance of hitting a 2% target as Geoff Thomas has of an England Recall", the most incompetent man in public life fails to hit the target."UK Consumer Prices Index inflation held steady at 4.5% in May, new data shows.
It means the CPI rate has now overshot the Bank of England's 2% target for 34 of the past 40 months.
The Retail Prices Index (RPI) measure of inflation - which includes mortgage interest payments - was also unchanged at 5.2%, according to the Office for National Statistics (ONS).
But analysts said rising energy prices meant inflation was likely to resume its upward path in the coming months.
"With the announcement of higher utility prices coming through by the summer, there's a good chance we'll be looking at a 5% plus inflation rate by the autumn," said Peter Dixon at Commerzbank.
His job.
Caulkhead said:
Fittster said:
Caulkhead said:
Fittster said:
Caulkhead said:
Fittster said:
Sir Merv fails once again.
They give honours for being the most hopeless central banker in the world? Once again Sir 'I'm a fkwit who has as much chance of hitting a 2% target as Geoff Thomas has of an England Recall", the most incompetent man in public life fails to hit the target.
"UK Consumer Prices Index inflation held steady at 4.5% in May, new data shows.
It means the CPI rate has now overshot the Bank of England's 2% target for 34 of the past 40 months.
The Retail Prices Index (RPI) measure of inflation - which includes mortgage interest payments - was also unchanged at 5.2%, according to the Office for National Statistics (ONS).
But analysts said rising energy prices meant inflation was likely to resume its upward path in the coming months.
"With the announcement of higher utility prices coming through by the summer, there's a good chance we'll be looking at a 5% plus inflation rate by the autumn," said Peter Dixon at Commerzbank.
For the benefit of the rest of us, what should he have done to hit those targets that he didn't do?They give honours for being the most hopeless central banker in the world? Once again Sir 'I'm a f
kwit who has as much chance of hitting a 2% target as Geoff Thomas has of an England Recall", the most incompetent man in public life fails to hit the target."UK Consumer Prices Index inflation held steady at 4.5% in May, new data shows.
It means the CPI rate has now overshot the Bank of England's 2% target for 34 of the past 40 months.
The Retail Prices Index (RPI) measure of inflation - which includes mortgage interest payments - was also unchanged at 5.2%, according to the Office for National Statistics (ONS).
But analysts said rising energy prices meant inflation was likely to resume its upward path in the coming months.
"With the announcement of higher utility prices coming through by the summer, there's a good chance we'll be looking at a 5% plus inflation rate by the autumn," said Peter Dixon at Commerzbank.
His job.
He isn't a soul singer, deep and short is better than long and shallow when it comes to recessions.
Fittster said:
Caulkhead said:
Fittster said:
Caulkhead said:
Fittster said:
Caulkhead said:
Fittster said:
Sir Merv fails once again.
They give honours for being the most hopeless central banker in the world? Once again Sir 'I'm a fkwit who has as much chance of hitting a 2% target as Geoff Thomas has of an England Recall", the most incompetent man in public life fails to hit the target.
"UK Consumer Prices Index inflation held steady at 4.5% in May, new data shows.
It means the CPI rate has now overshot the Bank of England's 2% target for 34 of the past 40 months.
The Retail Prices Index (RPI) measure of inflation - which includes mortgage interest payments - was also unchanged at 5.2%, according to the Office for National Statistics (ONS).
But analysts said rising energy prices meant inflation was likely to resume its upward path in the coming months.
"With the announcement of higher utility prices coming through by the summer, there's a good chance we'll be looking at a 5% plus inflation rate by the autumn," said Peter Dixon at Commerzbank.
For the benefit of the rest of us, what should he have done to hit those targets that he didn't do?They give honours for being the most hopeless central banker in the world? Once again Sir 'I'm a f
kwit who has as much chance of hitting a 2% target as Geoff Thomas has of an England Recall", the most incompetent man in public life fails to hit the target."UK Consumer Prices Index inflation held steady at 4.5% in May, new data shows.
It means the CPI rate has now overshot the Bank of England's 2% target for 34 of the past 40 months.
The Retail Prices Index (RPI) measure of inflation - which includes mortgage interest payments - was also unchanged at 5.2%, according to the Office for National Statistics (ONS).
But analysts said rising energy prices meant inflation was likely to resume its upward path in the coming months.
"With the announcement of higher utility prices coming through by the summer, there's a good chance we'll be looking at a 5% plus inflation rate by the autumn," said Peter Dixon at Commerzbank.
His job.
He isn't a soul singer, deep and short is better than long and shallow when it comes to recessions.
I would have thought that putting rates up end up pressuring those homeowners who are only paying their mortgages because of the low base rate? Flooding the housing market with a load of repos, a stack of homeless people, and leaving the banks with a load of negative equity on their loans may not be a very popular move for the Coalition (even if it may be what we need to get through the pain quickly).
WhoseGeneration said:
Bing o said:
(even if it may be what we need to get through the pain quickly).
That, though, is not acknowledged as the remedy.And we can't cut taxes to stimulate growth as it means we'd have to print more money, and no-ones buying Bulldogs apart from teh state-owned banks...
Check, and indeed mate, in my eyes at least.
Today:
"Unleashing high inflation on the economy in the hope that it will afford a painless route to slashing the nation's £910bn sovereign debt burden could have "disastrous consequences", Capital Economics warns.
A number of prominent economists have claimed inflation could be an easy path to fiscal sustainability by trimming the debt pile without inflicting extreme spending cuts on the country and by letting house prices normalise without triggering a damaging crash.
Some even believe that the Bank of England is operating a tacit high-inflation policy, having overshot its 2pc target for 51 of the past 60 months.
The warning that high inflation could be without beneficial effects, from Capital Economics, came as the Office for National Statistics published the latest data for May. The consumer prices index (CPI) was unchanged at 4.5pc – its highest level since September 2008 and the 17th consecutive month the rate was more than a percentage point above the Bank's target.
May's unchanged figure masked big annual rises in food prices as transport costs fell sharply month-on-month due to the timing of the Easter holidays.
Fish prices rose 11.4pc, sugar and confectionary 7.5pc, bread 5.8pc, fruit 5.4pc, meat 5.1pc and vegetables 5.1pcas the squeeze on households showed no signs of letting up."
http://www.telegraph.co.uk/finance/economics/85759...
Or a speech from the 1950s.
"If a policy of active or permissive inflation is to be a fact, then we can rescue the shreds of our self-respect only by announcing the policy. That is the least of the canons of decency that should prevail. We should have the decency to say to the money saver, 'Hold still, Little Fish! All we intend to do is gut you."
"Unleashing high inflation on the economy in the hope that it will afford a painless route to slashing the nation's £910bn sovereign debt burden could have "disastrous consequences", Capital Economics warns.
A number of prominent economists have claimed inflation could be an easy path to fiscal sustainability by trimming the debt pile without inflicting extreme spending cuts on the country and by letting house prices normalise without triggering a damaging crash.
Some even believe that the Bank of England is operating a tacit high-inflation policy, having overshot its 2pc target for 51 of the past 60 months.
The warning that high inflation could be without beneficial effects, from Capital Economics, came as the Office for National Statistics published the latest data for May. The consumer prices index (CPI) was unchanged at 4.5pc – its highest level since September 2008 and the 17th consecutive month the rate was more than a percentage point above the Bank's target.
May's unchanged figure masked big annual rises in food prices as transport costs fell sharply month-on-month due to the timing of the Easter holidays.
Fish prices rose 11.4pc, sugar and confectionary 7.5pc, bread 5.8pc, fruit 5.4pc, meat 5.1pc and vegetables 5.1pcas the squeeze on households showed no signs of letting up."
http://www.telegraph.co.uk/finance/economics/85759...
Or a speech from the 1950s.
"If a policy of active or permissive inflation is to be a fact, then we can rescue the shreds of our self-respect only by announcing the policy. That is the least of the canons of decency that should prevail. We should have the decency to say to the money saver, 'Hold still, Little Fish! All we intend to do is gut you."
Bing o said:
I would have thought that putting rates up end up pressuring those homeowners who are only paying their mortgages because of the low base rate? Flooding the housing market with a load of repos, a stack of homeless people, and leaving the banks with a load of negative equity on their loans may not be a very popular move for the Coalition (even if it may be what we need to get through the pain quickly).
If we're talking about a rate hike from 0.5% to say 2% (still far below inflation) then those homeowners who cannot afford an extra % or so on their mortgage are sailing too close to the sun and will in big trouble anyway when they get their next utility bill. IMO it's better to shake the tree now. TBH I don't think there will be stacks of homeless people - many of those falling off the tree will be amateur BTL'ers or those who are living beyong their means.People seem to think that all raising rates does is to potentially impact reposessions and house prices. There's a lot more to it than that.
If rates went from 0.5% to 2.0% here's what would happen:
Pro:
- May stimulate the pound and therefore prevent some of the imported cost inflation such as fuel and food.
- Will dampen domestic demand and may help to reduce demand-pull inflation.
Cons:
- Will not create enough stimulus to the pound to overcome all the cost-push inflation factors from overseas. Fuel is up 13% in a year, there is no way an increase in the pound can match that.
- Exporters will become less competitive and therefore the strongest growing part of our economy will be hurt, increasing the chance of a double-dip recession.
- Domestic demand (already low) will fall even further which could tip the economy back into recession.
- Less people will be able to use the low rate facility to repay debt.
- Higher risk of recession means the deficit and debt will grow even more and put a greater tax burden going forward.
I do wish people would be able to debate this withoutb thinking of the need to crash/boost house prices for their own personal greed.
If rates went from 0.5% to 2.0% here's what would happen:
Pro:
- May stimulate the pound and therefore prevent some of the imported cost inflation such as fuel and food.
- Will dampen domestic demand and may help to reduce demand-pull inflation.
Cons:
- Will not create enough stimulus to the pound to overcome all the cost-push inflation factors from overseas. Fuel is up 13% in a year, there is no way an increase in the pound can match that.
- Exporters will become less competitive and therefore the strongest growing part of our economy will be hurt, increasing the chance of a double-dip recession.
- Domestic demand (already low) will fall even further which could tip the economy back into recession.
- Less people will be able to use the low rate facility to repay debt.
- Higher risk of recession means the deficit and debt will grow even more and put a greater tax burden going forward.
I do wish people would be able to debate this withoutb thinking of the need to crash/boost house prices for their own personal greed.
oyster said:
People seem to think that all raising rates does is to potentially impact reposessions and house prices. There's a lot more to it than that.
If rates went from 0.5% to 2.0% here's what would happen:
Pro:
- May stimulate the pound and therefore prevent some of the imported cost inflation such as fuel and food.
- Will dampen domestic demand and may help to reduce demand-pull inflation.
Cons:
- Will not create enough stimulus to the pound to overcome all the cost-push inflation factors from overseas. Fuel is up 13% in a year, there is no way an increase in the pound can match that.
- Exporters will become less competitive and therefore the strongest growing part of our economy will be hurt, increasing the chance of a double-dip recession.
- Domestic demand (already low) will fall even further which could tip the economy back into recession.
- Less people will be able to use the low rate facility to repay debt.
- Higher risk of recession means the deficit and debt will grow even more and put a greater tax burden going forward.
I do wish people would be able to debate this withoutb thinking of the need to crash/boost house prices for their own personal greed.
^This.If rates went from 0.5% to 2.0% here's what would happen:
Pro:
- May stimulate the pound and therefore prevent some of the imported cost inflation such as fuel and food.
- Will dampen domestic demand and may help to reduce demand-pull inflation.
Cons:
- Will not create enough stimulus to the pound to overcome all the cost-push inflation factors from overseas. Fuel is up 13% in a year, there is no way an increase in the pound can match that.
- Exporters will become less competitive and therefore the strongest growing part of our economy will be hurt, increasing the chance of a double-dip recession.
- Domestic demand (already low) will fall even further which could tip the economy back into recession.
- Less people will be able to use the low rate facility to repay debt.
- Higher risk of recession means the deficit and debt will grow even more and put a greater tax burden going forward.
I do wish people would be able to debate this withoutb thinking of the need to crash/boost house prices for their own personal greed.
Although I think we could, at some point very soon, cope with base rates edging slilghtly higher before too many of the cons are felt. Exports though - that's particualrly fragile.
oyster said:
People seem to think that all raising rates does is to potentially impact reposessions and house prices. There's a lot more to it than that.
If rates went from 0.5% to 2.0% here's what would happen:
Pro:
- May stimulate the pound and therefore prevent some of the imported cost inflation such as fuel and food.
- Will dampen domestic demand and may help to reduce demand-pull inflation.
Cons:
- Will not create enough stimulus to the pound to overcome all the cost-push inflation factors from overseas. Fuel is up 13% in a year, there is no way an increase in the pound can match that.
- Exporters will become less competitive and therefore the strongest growing part of our economy will be hurt, increasing the chance of a double-dip recession.
- Domestic demand (already low) will fall even further which could tip the economy back into recession.
- Less people will be able to use the low rate facility to repay debt.
- Higher risk of recession means the deficit and debt will grow even more and put a greater tax burden going forward.
I do wish people would be able to debate this withoutb thinking of the need to crash/boost house prices for their own personal greed.
If the UK export sector can only compete on the world stage if we continually devalue the pound is it worth having in the first place? You don't need a weak currency to export, look at Germany and Japan.If rates went from 0.5% to 2.0% here's what would happen:
Pro:
- May stimulate the pound and therefore prevent some of the imported cost inflation such as fuel and food.
- Will dampen domestic demand and may help to reduce demand-pull inflation.
Cons:
- Will not create enough stimulus to the pound to overcome all the cost-push inflation factors from overseas. Fuel is up 13% in a year, there is no way an increase in the pound can match that.
- Exporters will become less competitive and therefore the strongest growing part of our economy will be hurt, increasing the chance of a double-dip recession.
- Domestic demand (already low) will fall even further which could tip the economy back into recession.
- Less people will be able to use the low rate facility to repay debt.
- Higher risk of recession means the deficit and debt will grow even more and put a greater tax burden going forward.
I do wish people would be able to debate this withoutb thinking of the need to crash/boost house prices for their own personal greed.
Fittster said:
If the UK export sector can only compete on the world stage if we continually devalue the pound is it worth having in the first place? You don't need a weak currency to export, look at Germany and Japan.
Precisely, this inflationary malarky is not for the benefit of private businesses but to keep bloated socialist governments in power. You could also argue that a slightly stronger pound provides an incentive for firms to modernise and improve productivity to remain competitive, instead of importing cheap labour from other countries (and then complaining about it).Gassing Station | News, Politics & Economics | Top of Page | What's New | My Stuff