tick...tick...tick.... BOOM!!!!!!!

HAMISH_MCTAVISH

Nov. 11 (Bloomberg) -- The Bank of England is prepared to stoke an economic boom to claw back the ground lost during the worst recession since World War II, Citigroup Inc. said.

“Policy has been set to produce a boom to close the output gap in the next few years,” said Citigroup economist Michael Saunders in an e-mailed note today.

The Bank of England’s new forecasts, published today, show that record-low interest rates and bond purchases will stoke a recovery twice as fast as those from the recessions of the early 1980s and 1990s, he said.

Bank of England Governor Mervyn King said in London today he has an “open mind” on whether a 200 billion-pound ($332 billion) bond-purchase plan should be expanded, signaling officials aren’t ready to withdraw stimulus even as the economy recovers. Saunders says International Monetary Fund figures indicate the so-called output gap will close by the end of 2012 if the Bank of England’s new forecasts are correct.

The Bank of England said in its quarterly Inflation Report that it expects growth to reach around 4 percent in late 2010 and early 2011 if rates rise as investors expect. It took seven years for the economy to recover from the two previous recessions, Citigroup says.

:beer:

Everybody loves a good BOOM.....:D

(OK, maybe not the hpc misery-mongers, but the other 99.999% of the population do)

tommy75

HAMISH_MCTAVISH wrote: »

:beer:

Everybody loves a good BOOM.....:D

(OK, not the hpc misery-mongers)

Hey Hamish, try getting a real job.

leveller2911

HAMISH_MCTAVISH wrote: »

:beer:

Everybody loves a good BOOM.....:D

(OK, maybe not the hpc misery-mongers, but the other 99.999% of the population do)

So by your figure only 0.001% of the population think house prices were over priced and are "correcting"........

Percentages and figures never were your forte Hamish..:D

Emy1501

Back in the summer of 2008 the BOE predicted growth for UK GDP in 2009. Are we supposed to believe everything they tell us?

abaxas

Emy1501 wrote: »

Back in the summer of 2008 the BOE predicted growth for UK GDP in 2009. Are we supposed to believe everything they tell us?

I'd agree,

They have been as wrong as they have been right. Why should we beleive anything that comes from them.

Wasnt there an incident with a leather sofa destroying the credibility of the CPI a couple of year ago etc.

nollag2006

Emy1501 wrote: »

Back in the summer of 2008 the BOE predicted growth for UK GDP in 2009. Are we supposed to believe everything they tell us?

Darn tooting right Emy - what do they know anyway?

Me personally, I prefer to listen to the words of Capital Economics, rather than a VI like the BOE. Capital Economics were the darling of the HPC muppets for the past decade, originally calling the top of the housing market in 2002 before eventually conceding, in April 2007, that house prices were unlikely to collapse any time soon.

Oh dear, oh dear, oh dear !!!

:rotfl:

Good to see that CE are now back on the wagon predicting imminent doom.

For that solid reason alone, I think house prices, and the wider economy, will be quite safe contnuing the upward trajectory for some time to come

:T

Graham_Devon

Might stoke a recovery twice as fast. But engineering a boom, will only result in a massive bust.

Pobby

My, my, is this something I missed out on all those years ago when dodging economics at school? An economy based on more and more lending, backed up by lowish inflation in the rest of the economy. A base rate that is unheard of in hundreds of years.

Sounds pretty much like the way to go.

nearlynew

Debt is the new wealth.