Inflation expectations "well anchored", satisfaction with BOE down.

Heyman_2

Batchy wrote: »

around 3 years ago inflation was negative... i dont understand why they would say that???

More like 4 years ago - it says in the article that the rate was 3.3% at the time so had gone back up from when it was negative the year before.

I don't doubt that Merv and the others would have done things differently 2-3 years ago with the benefit of hindsight, the problem is that they always have to work with the data in front of them to set rates based on what they think will happen in 18 months time. Merv was of the opinion at that time that inflation would come down in a year or so, the problem is that he went further and said that they would 'ensure' that it came back to target, so of course now he looks like an idiot.

I think they'd be raising rates now if the lack of economic growth wasn't such a big concern.

IveSeenTheLight

B_Blank wrote: »

Raising VAT was done because it was easiest politically. It was a terrible decision economically. They should of introduced a property tax to tax unearned wealth.

Anyway, I want interest rates to go up, but even I concede that at the moment the BoE should not be raising rates. Any decent uptick in economic performance or further surge in inflation will mean rates have to rise though.

Hmmm, how do you propose they tax property other than how they do now?

Stamp duty is a tax in property.
Council tax is a tax on property.
CGT can be a tax on property.
LL's pay tax on their property profits.

Projecting ahead to your proposal, would a refund be applicable in times such as 2008 when many suffered an "unearned loss"?
Wouldn't that make the government more inclined to ensure that property continues with HPI.