BoE raises interest rates to stem massive looming inflation

**SueEllen** · 10 March 2011, 13:34

I blame the condems

**AtW** · 10 March 2011, 14:31

Originally posted by SueEllen View Post

I blame the condems

condoms

If they were any good we would not have to put up with those deflationary types...

**lilelvis2000** · 10 March 2011, 18:34

While the continue to print money which, ironically, creates inflation! My what a wonderful world these bankers live in.

Besides, with all the money the US has printed, the BOE raising rates won't make a tiny bit of difference.

**Freamon** · 11 March 2011, 00:47

Originally posted by lilelvis2000 View Post

While the continue to print money which, ironically, creates inflation! My what a wonderful world these bankers live in.

Besides, with all the money the US has printed, the BOE raising rates won't make a tiny bit of difference.

Can you explain? In what sense is the BoE "continuing" to print money, given that QE has been frozen for months. In fact, in what sense is QE "printing money" in the first place?

**AtW** · 11 March 2011, 00:49

Originally posted by Freamon View Post

In fact, in what sense is QE "printing money" in the first place?

0.5% official rate when real inflation is well over 5% is the same as printing money.

HTH

**Freamon** · 11 March 2011, 07:38

Originally posted by AtW View Post

0.5% official rate when real inflation is well over 5% is the same as printing money.

HTH

There's more than one logical leap of faith in that statement.

Is "inflation" only ever due to printing money?

**amcdonald** · 11 March 2011, 07:50

Originally posted by Freamon View Post

There's more than one logical leap of faith in that statement.

Is "inflation" only ever due to printing money?

No, theres

this kind of inflation as well

**TimberWolf** · 11 March 2011, 15:02

Markets sentiment is that leaving UK base rates unchanged is more destructive to the £ than a tsunami.

Sterling is down over 1% against the Yen today. Japan, which has and continues to suffer its biggest earthquake in recorded history and the 7th biggest in history globally, and which will presumably cost untold trillions of Yen to the economy, is on firmer ground than the UK.

**TimberWolf** · 11 March 2011, 15:03

Originally posted by TimberWolf View Post

Markets sentiment is that leaving UK base rates unchanged is more destructive to the £ than a tsunami.

Sterling is down over 1% against the Yen today. Japan, which has and continues to suffer its biggest earthquake in recorded history and the 7th biggest in history globally, and which will presumably cost untold trillions of Yen to the economy, is on firmer ground than the UK.

1.3% down now.

BoE raises interest rates to stem massive looming inflation