UK inflation falls less than expected in May

StevieJ

Some inflation views by the 'experts'

http://www.guardian.co.uk/business/2009/jun/16/inflation-what-economists-say

inspector_monkfish

13:42 16Jun09 BOE MPC-DESIGNATE POSEN SAYS SEES VERY LIMITED INFLATIONARY IMPACT FROM QUANTITATIVE EASING POLICIES


BRUSSELS, June 16 - Quantitative easing policies are likely have a very limited impact on inflation, Bank of England Monetary Policy Council designate Adam Posen said on Tuesday.
"(The impact will be) very limited, because central banks have learnt the lessons of the 70ties," Posen, who will take his post in the MPC from Sept 1, told reporters.
He would not elaborate.
Asked about his view on the "green shoots" in the economy, Posen said he expected positive growth in the U.S., China and, with a lag, in Japan, well before the end of this year.
"I expect that to continue well through 2010," he said. He made clear he would not make any forecasts concerning Britain before he participates in "at least one MPC cycle."

ad9898_3

Milarky wrote: »

Yes, we are only now 'up to' April 2008 in terms of past BOE rate/mortgage cuts. There is another six months therefore until the first of the subsequent cuts (October 2008 - 0.5% reduction) will exit the RPI - that's when it gets 'interesting' again. (Expect a 'switch' in reporting from RPI to CPI to occur about then!)

This is right on the money, by Christmas the big IR drops will be out of the equation, and even if they switch to CPI again:rolleyes:, they still have the fact that VAT will be going up, the oil price will be double what it was in Jan 09, even if it stays static now at around $70 a barrel, interesting times indeed are ahead. I still wonder if we might be in for an October election after all.:rolleyes:

RDB

So interesting times yes, but where to put your money until houses prices eventually bottom out?

The way things are just sitting in a bank for 4% is ok for now, if the pound stays strong and inflation is low, even slight deflation.

AD9898 if I remember right you are sitting on some money wating for the bottom to buy back into property, where is your money invested?