BoE MPC member says prices could drop to 2003 levels.

kennyboy66_2

BTLNEWbie wrote: »

Interest rates need to be put up by at least 2% now, then no one would be able to pay out large wage increases.
Lets go for a hard quick lesson and get it over with now.

What's this, a competition to see who can make the recession as painful as possible ?

adr0ck

kennyboy66 wrote: »

What's this, a competition to see who can make the recession as painful as possible ?

yep anything as long as interest rates are high so all the rich posters on here can get richer and richer with all their cash they've got stashed away

m00m00

and the poorer people can get more value for money from their shopping thanks to inflation being kept (slightly) in check.

adr0ck

m00m00 wrote: »

and the poorer people can get more value for money from their shopping thanks to inflation being kept (slightly) in check.

if they still have a job moo

you don't get much without a job

m00m00

I'm thinking more of the very poorest on benefits, and minimum wage jobs
the people who generally spent a huge chunk of their income on essentials, and who are disproportionately affected by inflation on items such as food, due to a large ratio of their income being spent on it.

adr0ck

m00m00 wrote: »

I'm thinking more of the very poorest on benefits, and minimum wage jobs
the people who generally spent a huge chunk of their income on essentials, and who are disproportionately affected by inflation on items such as food, due to a large ratio of their income being spent on it.

unfortunately it will be the people on minimum wage jobs who will be most at risk with losing their jobs

and yes i agree they are the same people who have been disproportionately affected by inflation with regards to food, fuel and energy costs

however these increases are not due to inflation (in the main part) from this country

they are mainly externally driven

WTF?_2

adr0ck wrote: »

unfortunately it will be the people on minimum wage jobs who will be most at risk with losing their jobs

and yes i agree they are the same people who have been disproportionately affected by inflation with regards to food, fuel and energy costs

however these increases are not due to inflation (in the main part) from this country

they are mainly externally driven

Yet 'imported' deflation in consumer goods was used to justify the stupidly low rates of the last few years - now rebounding so disastrously on us since the housing bubble no longer hides the effects of the inflation. :rolleyes:

Now that we have raging price rises from the inflation, all of sudden we're told interest rates don't have an affect on it because a lot of it is 'imported'.

So, low inflation due to imports = low interest rates. High inflation due to imports = low interest rates.

Hmm, something not right there but I can't quite put my finger on it. :cool:

PayDay

kennyboy66 wrote: »

Erm...... he's British

"Danny obtained his BA in Economics from the University of Leicester (1973), his Masters in Economics from the University of Wales (1983) and his PhD in Economics from the University of London (Queen Mary and Westfield - 1985)"
http://www.bankofengland.co.uk/about/people/biographies/blanchflower.htm

ManAtHome

!!!!!!? wrote: »

So, low inflation due to imports = low interest rates. High inflation due to imports = low interest rates.

LOL - quite.

1. The plebs will be happy with their cheap plasma tellies.

2. The plebs have no pricing power so wage inflation can't take off.

Isn't that the old "bait and switch" con?

ps - to the "lower the rates" brigade - exactly how much have mortgage and loan rates dropped since December 2007, anywhere close to 0.75%...?

baby_boomer

dannyboycey wrote: »

Sadly, I fear many of the UK population share this view [that interest rates should be cut].

Thank goodness Gordon gave the decision to the Bank. Otherwise they'd have been cut a while ago - and cut again. Just before each by-election .