Wednesday 12 February 2014

Monitory Policy U-turn

OK, let’s get straight to the point and round off all this nonsense……key headlines from yesterday’s announcement……  
 
Bank of England Governor Mark Carney has done the decent thing and announced yesterday that the measure for determining interesting rates will be ‘adjusted’.
 
Originally the measure was the rate of unemployment but it will now include “a wide range of factors”. Exactly what it should have done in the first place.
 
Carney warned that the UK recovery was not secure and that when rates rose, they would do so only "gradually".
 
Interest rates are unlikely to rise before next year’s election.So there you have it……the lobbying worked and the Bank of England took the embarrassing decision to perform a monitory policy u-turn. The big winners should be the housing market, businesses and panicking homeowners.
 
Our work here is done……well except some egg on the face of a few to be wiped off.
 
 

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