Inflation arguments
Discussion
Inflation seems to be widely debated on several threads, especially around today's BoE cut so I thought I would quote this as have received it in on email this afternoon so fairly accurate.
It should also help some of the amateur economists out there who 'know' better?
'The MPC confirmed that the past two months have seen a
substantial downward shift in the prospects for inflation in
the United Kingdom. “In recent weeks, the risks to inflation
have shifted decisively to the downside. Consequently, the
Committee has revised down its projected outlook for
inflation which, at prevailing market interest rates, contains a
substantial risk of undershooting the inflation target. At its
November meeting, the Committee therefore judged that a
significant reduction in Bank Rate was necessary now in
order to meet the 2% target for CPI inflation in the medium
term.” '
It should also help some of the amateur economists out there who 'know' better?
'The MPC confirmed that the past two months have seen a
substantial downward shift in the prospects for inflation in
the United Kingdom. “In recent weeks, the risks to inflation
have shifted decisively to the downside. Consequently, the
Committee has revised down its projected outlook for
inflation which, at prevailing market interest rates, contains a
substantial risk of undershooting the inflation target. At its
November meeting, the Committee therefore judged that a
significant reduction in Bank Rate was necessary now in
order to meet the 2% target for CPI inflation in the medium
term.” '
Slaav said:
Inflation seems to be widely debated on several threads, especially around today's BoE cut so I thought I would quote this as have received it in on email this afternoon so fairly accurate.
It should also help some of the amateur economists out there who 'know' better?
'The MPC confirmed that the past two months have seen a
substantial downward shift in the prospects for inflation in
the United Kingdom. “In recent weeks, the risks to inflation
have shifted decisively to the downside. Consequently, the
Committee has revised down its projected outlook for
inflation which, at prevailing market interest rates, contains a
substantial risk of undershooting the inflation target. At its
November meeting, the Committee therefore judged that a
significant reduction in Bank Rate was necessary now in
order to meet the 2% target for CPI inflation in the medium
term.” '
Is this the same MPC that failed to predict the massive spike in inflation over the last year or some other organsation with the same initials?It should also help some of the amateur economists out there who 'know' better?
'The MPC confirmed that the past two months have seen a
substantial downward shift in the prospects for inflation in
the United Kingdom. “In recent weeks, the risks to inflation
have shifted decisively to the downside. Consequently, the
Committee has revised down its projected outlook for
inflation which, at prevailing market interest rates, contains a
substantial risk of undershooting the inflation target. At its
November meeting, the Committee therefore judged that a
significant reduction in Bank Rate was necessary now in
order to meet the 2% target for CPI inflation in the medium
term.” '
NoelWatson said:
Slaav said:
Inflation seems to be widely debated on several threads, especially around today's BoE cut so I thought I would quote this as have received it in on email this afternoon so fairly accurate.
It should also help some of the amateur economists out there who 'know' better?
'The MPC confirmed that the past two months have seen a
substantial downward shift in the prospects for inflation in
the United Kingdom. “In recent weeks, the risks to inflation
have shifted decisively to the downside. Consequently, the
Committee has revised down its projected outlook for
inflation which, at prevailing market interest rates, contains a
substantial risk of undershooting the inflation target. At its
November meeting, the Committee therefore judged that a
significant reduction in Bank Rate was necessary now in
order to meet the 2% target for CPI inflation in the medium
term.” '
Is this the same MPC that failed to predict the massive spike in inflation over the last year or some other organsation with the same initials?It should also help some of the amateur economists out there who 'know' better?
'The MPC confirmed that the past two months have seen a
substantial downward shift in the prospects for inflation in
the United Kingdom. “In recent weeks, the risks to inflation
have shifted decisively to the downside. Consequently, the
Committee has revised down its projected outlook for
inflation which, at prevailing market interest rates, contains a
substantial risk of undershooting the inflation target. At its
November meeting, the Committee therefore judged that a
significant reduction in Bank Rate was necessary now in
order to meet the 2% target for CPI inflation in the medium
term.” '
s2art said:
NoelWatson said:
Slaav said:
Inflation seems to be widely debated on several threads, especially around today's BoE cut so I thought I would quote this as have received it in on email this afternoon so fairly accurate.
It should also help some of the amateur economists out there who 'know' better?
'The MPC confirmed that the past two months have seen a
substantial downward shift in the prospects for inflation in
the United Kingdom. “In recent weeks, the risks to inflation
have shifted decisively to the downside. Consequently, the
Committee has revised down its projected outlook for
inflation which, at prevailing market interest rates, contains a
substantial risk of undershooting the inflation target. At its
November meeting, the Committee therefore judged that a
significant reduction in Bank Rate was necessary now in
order to meet the 2% target for CPI inflation in the medium
term.” '
Is this the same MPC that failed to predict the massive spike in inflation over the last year or some other organsation with the same initials?It should also help some of the amateur economists out there who 'know' better?
'The MPC confirmed that the past two months have seen a
substantial downward shift in the prospects for inflation in
the United Kingdom. “In recent weeks, the risks to inflation
have shifted decisively to the downside. Consequently, the
Committee has revised down its projected outlook for
inflation which, at prevailing market interest rates, contains a
substantial risk of undershooting the inflation target. At its
November meeting, the Committee therefore judged that a
significant reduction in Bank Rate was necessary now in
order to meet the 2% target for CPI inflation in the medium
term.” '
They have no idea what they are doing... they toss a coin I am sure when making a decision.
A rate cut takes at least six months to make any impact - mortgage companies don`t alter mortgages rates until the next month - by that time there is another rate decision !! Ridiculous ...
The low interest rates will be counter productive in the long term - and I think we will see high interest rates within the next 2-3 years to try and strengthen the pound and encourage investment in the UK again.
I`m all for strict lending private conditions provided that the banks nurture and protect small businesses and be pragmatic and "hands on" in their commercial lending.
A rate cut takes at least six months to make any impact - mortgage companies don`t alter mortgages rates until the next month - by that time there is another rate decision !! Ridiculous ...
The low interest rates will be counter productive in the long term - and I think we will see high interest rates within the next 2-3 years to try and strengthen the pound and encourage investment in the UK again.
I`m all for strict lending private conditions provided that the banks nurture and protect small businesses and be pragmatic and "hands on" in their commercial lending.
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