Curious Russell how you see the BOE being effective this late. The BOE failure to act goes back to Carney's time. The UK imports a lot of inflation and it also has a considerable short dated mortgage market, so as the BOE raises rates a lot are going to get squeezed quite quickly on variable rates.
Curious Russell how you see the BOE being effective this late. The BOE failure to act goes back to Carney's time. The UK imports a lot of inflation and it also has a considerable short dated mortgage market, so as the BOE raises rates a lot are going to get squeezed quite quickly on variable rates.
BOE follows politicians lead I think. If inflation is an issue, then the BOE will come under pressure to act. For years, politicians have wanted rising house prices, as that has been a vote winner - but now I think inflation is the main issue. Both Australia and NZ have begun central bank reviews, surely the UK will follow.
My other argument is if we favour labour over capital, then you prefer a strong currency to a weak one, as it keeps real wages strong, while not being great for profits.
Curious Russell how you see the BOE being effective this late. The BOE failure to act goes back to Carney's time. The UK imports a lot of inflation and it also has a considerable short dated mortgage market, so as the BOE raises rates a lot are going to get squeezed quite quickly on variable rates.
BOE follows politicians lead I think. If inflation is an issue, then the BOE will come under pressure to act. For years, politicians have wanted rising house prices, as that has been a vote winner - but now I think inflation is the main issue. Both Australia and NZ have begun central bank reviews, surely the UK will follow.
My other argument is if we favour labour over capital, then you prefer a strong currency to a weak one, as it keeps real wages strong, while not being great for profits.