Inflation
A blog here discusses our recent rather high inflation figures. The blog itself is worth reading but it is also worth going over a sample set of the comments that follow it which give a kind of pub economists view of where this all leads. I find I agree with them in that there must surely come a point where the Bank of England's alleged brief to watch inflation using interest rates as its tool of choice must be seen to be being ignored.
Don't get me wrong, from a personal point of view I would love interest rates to stay low while the real cost of my mortgage gets inflated away along with all the reckless credit card debt and the government borrowing, but this is so the wrong thing to do. It rewards those who have behaved selfishly and irresponsibly (governments, companies and individuals) and does it by punishing those who have behaved in a sensible way.
Rather annoyed, I would be, if I was still in the sensible profile. And I would also be expecting the BOE to come up with something a bit more impressive than 'yeah, it'll sort itself out in a bit' which is what they have been mostly saying for about 18 months
Don't get me wrong, from a personal point of view I would love interest rates to stay low while the real cost of my mortgage gets inflated away along with all the reckless credit card debt and the government borrowing, but this is so the wrong thing to do. It rewards those who have behaved selfishly and irresponsibly (governments, companies and individuals) and does it by punishing those who have behaved in a sensible way.
Rather annoyed, I would be, if I was still in the sensible profile. And I would also be expecting the BOE to come up with something a bit more impressive than 'yeah, it'll sort itself out in a bit' which is what they have been mostly saying for about 18 months