Mervyn King: high inflation will not force rate rise

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Gonzo replied

12 November 2010, 07:27
Originally posted by AtW View Post

Oh FFS, his ******* job is to use rates to keep inflation low

No, that's what we all were told that his job was but it should be becoming increasingly apparent by now that that was not the truth.
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TimberWolf replied

11 November 2010, 10:00
25% drop in the pound since 2007 relative to what?
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TimberWolf replied

11 November 2010, 09:58
No inflation report should go without the words "unexpected", "temporary" and "deflation" left unsaid.
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AtW started a topic Mervyn King: high inflation will not force rate rise

11 November 2010, 02:02
Mervyn King: high inflation will not force rate rise

The Bank of England predicted today that inflation in Britain would remain above its target for the whole of next year as the rise in VAT in January and dearer imports affect the cost of living.

Mervyn King, the Bank's governor, admitted that inflation continued to exceed Threadneedle Street's expectations, but gave no hint that the nine-strong monetary policy committee was about to raise borrowing costs in response.

The governor told a press conference to launch the Bank's quarterly inflation report that inflation was forecast to fall back to its target in early 2012 once the impact of the temporary factors pushing up prices diminished.

Despite the reassurance to borrowers that there was little prospect of interest rates being raised, the City said the stubbornness of inflation coupled with stronger growth in the second and third quarters of 2010 made further boosts to growth from the MPC less likely. The pound rose and gilt prices fell after the publication of the inflation report.

King said there was no shortage of explanations for the current level of inflation, citing a 25% drop in the value of the pound since 2007, the surge in global commodity prices and big changes to VAT.

More tulip from ze King: Mervyn King: high inflation will not force rate rise | Business | The Guardian

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Oh FFS, his ******* job is to use rates to keep inflation low, yet he refuses to do so - this surely goes beyond mere incompetence displayed previously when he allowed (intentionally or due to incompetence) unchecked credit boom.

"Today's report noted that there remained a "high probability" that King would need to pen further letters to George Osborne in the coming months."

Well' that's all right then!!!
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