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No Surprise

Many economic "experts" had us heading into spiralling deflation many months ago but this was just not possible. With sterling falling 30% or more QE pumping massive amounts of unearned cash into banks and the underlying structural inbuilt inflation in the UK economy. and it is not all over sterling could well fall again by another 20 - 30% interest rates can only be raised by a tiny margin otherwise the UK will have to borrow even more just to meet the interest repayments let alone any capital repayment. Inflation is a monetary thing - as someone once said or something very like it.

Posted by: John Whipple

21 Apr 2010 | 10:54
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BoE credibility erodes as inflation 'surprises' again: Ward

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