i think the BoE needs to remember their purpose. Keep inflation at or below 2%

The_White_Horse

all these other concerns are not theirs. do your job - raise interest rates.

this is becoming a joke.

abaxas

Since they are not doing their job.

Anyone fancy setting up a 'big society' central bank?

HAMISH_MCTAVISH

The_White_Horse wrote: »

keep inflation at or below 2%

That's not actually true.

The target is 2%. The acceptable range, outside of which they must write an explanatory letter, is 1% to 3%.

And in this case, if they wanted to keep inflation below 3%, with the VAT rises we've had, they'd need to tip the country back into recession to do it.

And promptly cut rates again soon after as deflation took hold.

In which case, that explanatory letter might get a bit complicated....

purch

all these other concerns are not theirs. do your job - raise interest rates.

this is becoming a joke

As raising Interest Rates would not reduce Inflation, I would contend that "their job" is far more complicated than that.

The only "Joke" is the continued belief that either raising or lowering Interest rates is the sole tool for controlling the economy, when in fact it is one of many tools, and probably the least effective in the medium to longer term.

chucky

purch wrote: »

As raising Interest Rates would not reduce Inflation, I would contend that "their job" is far more complicated than that.

The only "Joke" is the continued belief that either raising or lowering Interest rates is the sole tool for controlling the economy, when in fact it is one of many tools, and probably the least effective in the medium to longer term.

this should really be a sticky thread on this explaining why, but then again it's been explained to the same people time after time and they still don't understand :wall:

whatyadoinsucka

The_White_Horse wrote: »

all these other concerns are not theirs. do your job - raise interest rates.

this is becoming a joke.

I'd suggest you get on your white horse and ride off into the sunset and come back when rates rise 0.25% and you can say

'i told you so'


The bank of england is not going to control inflation if the result is the uk economy is to fall into the abyss..

Graham_Devon

Martin appeared quite vocal on the radio a minute ago about the lack of anything being done.

Generali

The_White_Horse wrote: »

all these other concerns are not theirs. do your job - raise interest rates.

this is becoming a joke.

Not true. There is an inflation target of 2% and a requirement thatthe MPC set interest rates to support the Government's economic goals.

wotsthat

Graham_Devon wrote: »

Martin appeared quite vocal on the radio a minute ago about the lack of anything being done.

Why don't you PM him with all that data you have about the huge increase in mortgage arrears that would result from a rate rise - that should reassure him.

Thrugelmir

The_White_Horse wrote: »

all these other concerns are not theirs.

Financial stability is their other objective. All is not yet fixed in the banking system, and won't be for several years yet.

chucky

Graham_Devon wrote: »

Martin appeared quite vocal on the radio a minute ago about the lack of anything being done.

martin can say what he likes, it doesn't mean he's right.

he runs a business that markets themselves well and is successful in the market they are in. this isn't usually the same thing as what is good for the economy.