The Bank of England has spoken.
Growth forecasts for GDP are down.
But Mark Carney says the economy is in a robust place. Come on, Mr Carney, pull the other one. By 9-0 you just voted that you don't think it is.
And the BoE puts interest rates on hold but says rate rises are more likely than falls. It's just that markets don't believe them.
Oh, and BoE unemployment forecast is it will be going down despite it all. Now we're just whistling in the wind.
Sorry, but I just don't think that leaves Carney with a shred of credibility.
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Some capitalists know exactly where the economy is heading! We now have the easyjet equivalent of the supermarket price wars that will get even get Pound shops seriously worried.
To say we are racing to the bottom is an obvious understatement – no doubt this will be hailed as a clear sign of the success of the free market in meeting the needs of ordinary people (while cutting wages and benefits even further to force more through the doors of such establishments!)
http://www.independent.co.uk/news/business/easyfoodstore-forced-to-shut-after-budget-supermarket-runs-out-of-stock-a6852611.html
Richard these are weird times.
All these years of 0.5% interest rates which as you suggest would indicate abnormality, yet these rates together with the abundance of virtually cost free money, what has it produced.
Obviously, with the abundance of virtually free money, asset prices have risen, yet amazingly our measures of inflation exclude housing costs.
We kid ourselves that inflation is low but fail to see the irony of yet another year of double digit house inflation.
Madness
I have an Porsche I bought 30 years ago for £10000. For most of those 30 years its value has been, er, £10000. In the last several years it’s “value” gas risen so that I now gave buyers biting my hand off to sell at £35000. Same car, no renovation or improvements carried out and infact with more miles on the clock!
Obviously the faltering stock market is perhaps indicating the trouble to come.
I assume the real forecast for 2016 is 1.9% but Carney did George a `mate’s rates` favour of 2.2% to spare George’s blushes?
Carney shafted Canada, due you expect anything different from this economic misfit!
is it not the problem that is debt and the people have no spare money to buy anything so we will not have any inflation or good growth till its paid off ?