| Topic: | Re:Re:Re:Re:Re:Re:Re:Re:Time to raise interest rates? | |
| Posted by: | E Yarrow | |
| Date/Time: | 24/03/09 14:41:00 |
| http://business.timesonline.co.uk/tol/business/economics/article5966450.ece Even Merv has said that inflation is the big worry. Just a shame he will ignore his core remit for Gordon Clown.... "Asked by Michael Fallon, the committee deputy chairman, what the “exit plan” was, Mr King replied: “We have an exit strategy - the obvious thing is to raise interest rates and tighten monetary policy. We have to take actions that we feel are consistent to keeping inflation close to target in the medium term. Related Links UK economy teeters on brink of deflation Quantitative easing a qualified success Big freeze starts to hit public sector pay “What will keep our feet to the fire is the inflation target — that’s why we have one.” Today it emerged that the Bank's key measure of inflation, the Consumer Price Index, had unexpectedly risen from 3 per cent to 3.2 per cent in February, prompting Mr King to write another letter to Alistair Darling, the Chancellor, to explain why inflation remains above the 2 per cent " We are over shooting the safe inflation target now... gawd help us as the QE money trickles down. |