UK inflation hits 17-month high

Discussion in 'Current Affairs, News and Analysis' started by whitecity, May 18, 2010.

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  1. What did anyone expect after printing £200 billion?

    Now's the time to borrow. Low interest rates and inflation to erode the principle. If you're inclined towards a punt in that direction.
  2. Alsacien

    Alsacien LE Moderator

    To let it go up that much so quickly is a poor performance from the BofE, an open letter of apology has been published (nobody is sure why). But I'm not sure it is structural and therefore should settle without too much of a base rate increase.
  3. I dont think it has anything to do with printing money as you say more like oil going up and as it says the other things like womens clothing etc and imports as well
  4. So LEOLION you dont agree that printing currency to ease the recession has no impact on inflation? You aren't very good at history are you!
  5. Alsacien

    Alsacien LE Moderator

    Worryingly, he seems to know a lot about womens clothing though........... :D
  6. Bloody tories. Only been in a matter of days and inflation has gone through the roof already!

    Nah, only joking. This is actually not a huge issue - and has been impacted by a number of things that hit specifically in April. It will fall again throughout the year. I would suggest that it will come down to around 2.7 by October / November.

    You can keep that and beat me up with it if I am wrong.
  7. The more the merrier but could they wait until September please.

    The higher the rate then the more gets added to miltary pensions.
  8. Alsacien

    Alsacien LE Moderator

    You had better hope it is nearer to 2% and sooner rather than later - that is after all the BofE target.
    If the ECB can do it with all the machinations in the 16 member Eurozone, the BofE look twunts if they cannot even control one economy....
  9. Why should that be worrying? One now knows who to turn to for advice. :D

    Back to more serious things, just how independant is the BoE from political interference?
  10. OldSnowy

    OldSnowy LE Moderator Book Reviewer

    Presumably most European Central Banks haven't been printing money hand over fist in order to 'fiscally ease' things for thier political masters?
  11. Alsacien

    Alsacien LE Moderator

    There is only one ECB in policy terms, and yes they have - but in a different and more focussed way - nothing like to the extent the BofE has added liquidity generically.
    Cannot even blame Gordon Brown for this (well maybe a bit..)
  12. Indeed it would be a punt. The most obvious tool the government has to control inflation is interest rates, or raising them. Thus, one may borrow now and find it difficult to repay down the line. That is, unless a fixed rate deal can be made.
  13. Alsacien

    Alsacien LE Moderator

    Completely - however is does have to deal with the fallout of political decisions so is not impartial and can advise.
  14. They'll look even bigger twunts if they try to start a war on inflation in the middle of a fragile recovery.
  15. Alsacien

    Alsacien LE Moderator

    Without inflation control and confidence in the central bank you have no letters saying sorry are not going to cut it.