Thursday, February 10, 2011

We will find out next week

We will have to wait until next Wednesday before we learn of the mental contortions of the monetary policy committee that led them to keep interest rates fixed while inflation accelerates.

The Bank of England’s Monetary Policy Committee today voted to maintain the official Bank Rate paid on commercial bank reserves at 0.5%. The Committee also voted to maintain the stock of asset purchases financed by the issuance of central bank reserves at £200 billion.

The Committee’s latest inflation and output projections will appear in the Inflation Report to be published at 10.30am on Wednesday 16 February.


  1. The MPC is right to keep interest rates on hold.

    Raising rates would make life even more difficult for borrowers and threaten the recovery (or worsen the double-dip).

    Inflation is simply due to volatility in commodity prices and a weak pound. The MPC has no control over global commodities and should have no desire to strengthen the pound, since a weak pound helps UK exporters.

    Why is Alice so paranoid about 4% inflation? It's not the end of the world.

  2. Barry,

    Why so paranoid about 4 percent inflation?

    First, compounding.

    Second, inflation is the enemy of the middle class.

    Third, destroy the middle class and we are but an empty plate away from anarchy.