RRS or Email updates

Related stories

• The ageing population bomb
• Sterling crisis "claptrap"
• Shadow MPC "hold rates"
• A good recession for capitalists
• The impact of rising commodity prices
• UK inflation numbers
• European economy -2.3% annual, +0.1% quarterly
• Unemployment statistics no sign of recovery
• Bank of England to print another $25bn
• IMF report on UK

Latest

• The ageing population bomb
• Sterling crisis "claptrap"
• House prices down, trend uncertain
• Shadow MPC "hold rates"
• Warren Buffet on housing, acquisition and more
• A good recession for capitalists
• Europe's new population bomb
• The impact of rising commodity prices
• What is the point of multi-manager funds?
• Gold and the Euro

Bank of England inflation report

In its Inflation Report the Bank of England does expect a short term rise in inflation above its target level, but this is due to strictly short term factors (the oil price and the reversal of the temporary reduction in VAT). The real message is that inflation is highly unpredictable.

The average of the Monetary Policy Committee’s (MPC) expectations is that inflation will fluctuate around the 2% target rate. The other good news is that the MPC expects a return to growth next year, with a surge in GDP that will wipe out the effects of the recession by the end of 2010, with slower, but still strong, growth in 2011 and 2012.

If the MPC is correct (and it is an independent committee of experts), then inflation is not likely to be a problem, and a return to growth is imminent.

We need user contribution, so please suggest stories/links

Comments