Energy prices up, house prices down -> Bank rates stay flat
Posted by markharrison on January 10, 2008
Viewpoint 1: The Central Bankers are going to be earning their money this year.
Viewpoint 2: The economy may as well be run by Roly Mo from the Fimbles for all the difference the BoE’s going to be able to make this year.
Yup – stagflation seems to be with us. Prices are going up, but consumption’s going down. Whichver way the MPC move interest rates, some part of the economy is going to get badly harmed.
Today’s decision? Do nothing. UK base rates remain at 5.5%