Now we now officially it's going to get a lot worse...

TRUSt_NO_1_2

Chancellor Alistair Darling has outlined plans to give the Bank of England new responsibilities in his Mansion House speech. Speaking in his first keynote address to business leaders, the chancellor said the Bank would now be accountable for the UK's financial stability.

WHAT STABILITY YOU IDIOT ???

He knows what's coming soon...so now we can't blame the politicians.

Has anybody got Mervyn's email address ?...NO
Can YOU vote Mervyn out ?...NO

Why don't you blame terrorism ..they seem to be blamed for everything else along with global warming.

nrsql

Lol - If that happens I doubt if he'll be there too much longer - then they'll have to get someone who's not bright enough to realise they're a scapegoat (or maybe not principled enough to care).

If this is really true it'll make them reponsible for the effects of government policy. It sounds more like they will be responsible for monitoring and supporting financial institutions rather than the UK in general.

Wonder who will control the FSA (I do a lot of work with them so can't be too honest about my opinion).

Aegis

Did anyone read the letter from King to Darling? It really did seem to have a real undertone of "we're the ones in charge of monetary policy, and we will make any decisions regarding interest rates, not you", which is extremely good news. After all, it's not like Darling has any real experience with finance, while the MPC seems to have a fairly good idea of what's going on in the world and what they need to do about it.

Essentially they've pointed out that about 1.1% of the 1.2% rise in CPI is due to rising oil costs, and they predict at the moment that this is likely to collapse back on itself at some point in the next year and will therefore not require upheaval in monetary policy to correct. As such, I would certainly predict that we're not going to see massive interest rate hikes any time soon, and may even see them sit on the current level to see if inflation will correct itself with an oil price correction.

tradetime

As such, I would certainly predict that we're not going to see massive interest rate hikes any time soon, and may even see them sit on the current level to see if inflation will correct itself with an oil price correction.

Much like the US, UK Plc is not positioned for massive interest hikes, at best I see them tracking the EU.

thor

Aegis wrote: »

Essentially they've pointed out that about 1.1% of the 1.2% rise in CPI is due to rising oil costs, and they predict at the moment that this is likely to collapse back on itself at some point in the next year and will therefore not require upheaval in monetary policy to correct.

Well they would be wrong!
Maybe in a reccession demand will drop but then supplies are drying up as well. If China and India continue as they are then oil is just going to continue to boom in price. In fact even if they don't I predict the demise of the age of oil. We need nuclear fusion to be online by then or it's back to holidaying via sailing ships and walking to the cornershop.