Not as confused as the monetary policy committee. Here are a few recent mumblings from committee members.....
Didn't the CPI inflation rate go up in February?
"Dis-inflationary pressure within the UK economy is now clearly evident. Though the annual rate may be volatile in the months ahead, CPI inflation has fallen sharply from its peak in September."
David Blanchflower, MPC member, March 2009
It is not your common garden inflation, its deflationary inflation
"Inflation in the UK is currently still above target. CPI data released this morning show that inflation was 3.2% in February, triggering another open letter from me to the Chancellor. At its next meeting, the Committee will want to consider further the implications of this inflation outturn."
Mervyn King, March 2009
So, those rate cuts were a waste of time
"It seemed all too likely that as Bank Rate has moved to historically low levels the impact of cuts has become successively reduced."
Kate Barker, MPC member, March 2009
Remind me again, why is the Bank of England printing money?
"We are running out of room for further cuts. But it must not be forgotten that even if Bank Rate remains where it is, the recent cuts in Bank Rate will continue to provide a building boost to demand through this year and beyond – we don’t have to keep on cutting rates in order to provide a stimulus."
Charles Bean, Deputy Governor for Monetary Policy
House prices don't matter
"For society as a whole, a change in house prices in itself does not significantly affect our well being. The stock of housing still exists, providing the same housing services as before. In the jargon used by economists, there is no significant aggregate wealth effect associated with a change in house prices. Some households gain, others lose."
Spencer Dale, Chief Economist of the Bank of England, September 2008
On second thoughts, maybe house prices are important
"I do agree that house prices should be included in the target the MPC considers. House prices are the most important asset for many households as it is the price of their home that they secure their mortgage lending against."
David Blanchflower, March 2009