BoE warned: Monetary conditions
- 16 November 2010
Speaking on the back of the unexpected rise in Consumer Price Index inflation to 3.2% in October, Ward, who had pencilled in a possible rise to between 3.3% and 3.4% against the expected 3.1% predicted by analysts, said he still expects CPI inflation to rise to about 4% by early 2011.
The shock rise in inflation automatically forced another explanatory letter from Bank of England governor Mervyn King to the chancellor,explaining yet again why inflation has remained more than 1% above target.
Ward says: "Governor King's latest exculpatory letter was accepted uncritically by a Chancellor keen to leave the door wide open to "QE2".
"The "temporary shocks" defence, however, is wearing thin. Commodity price gains are partly a reflection of a secular rise in demand for raw materials from emerging economies, a trend the MPC has consistently ignored.
- Rather than economic recovery 2014 is more likely to see France return to recession
- Abenomics cannot succeed whilst real wages continue to fall in Japan
- Some 40% more likely to do business with a challenger bank compared to a year ago
- Royal Mail reveals the UK's most desirable postcodes...
- How ex-pats can get their currency conversion right
- Short change - How worried should you be that hedge funds appear so reluctant to short?
- Energy customers warned that six fixed rate tariffs due to end on September 30th
- The premium to live near one of England’s top state schools? That's £483,031
- The Scottish Independence vote - a 'yes' could bring Government closer to the people
- Millions of motorists ignoring the risks of driving the morning after the night before