unbeliever Posted August 17, 2015 Share Posted August 17, 2015 The target is not 2% or lower, it is 2%, some inflation is deemed to be a positive thing. So it is to be exactly 2.000%, or they've failed? Link to comment Share on other sites More sharing options...
El Cid Posted August 17, 2015 Author Share Posted August 17, 2015 So it is to be exactly 2.000%, or they've failed? 0% or 4% and the BoE have failed, and have to send a letter to George O explaining why Link to comment Share on other sites More sharing options...
unbeliever Posted August 17, 2015 Share Posted August 17, 2015 0% or 4% and the BoE have failed, and have to send a letter to George O explaining why I'm not sure why low inflation should be a problem, especially with very low interest rates, but if you look at the recent history (especially 2014), they've done pretty well. It seems to be mostly the low oil prices pushing inflation down recently. I doubt the Chancellor will be overly upset. Link to comment Share on other sites More sharing options...
El Cid Posted August 17, 2015 Author Share Posted August 17, 2015 I'm not sure why low inflation should be a problem, especially with very low interest rates, but if you look at the recent history (especially 2014), they've done pretty well. It seems to be mostly the low oil prices pushing inflation down recently. I doubt the Chancellor will be overly upset. With low interest rates and QE both being a pressure to higher inflation, it makes one wonder why it is low, something must wrong somewhere, and then if we are meant to pay this QE money back, we cannot do that until we have some decent inflation? I am sure they know what they are doing Link to comment Share on other sites More sharing options...
unbeliever Posted August 17, 2015 Share Posted August 17, 2015 With low interest rates and QE both being a pressure to higher inflation, it makes one wonder why it is low, something must wrong somewhere, and then if we are meant to pay this QE money back, we cannot do that until we have some decent inflation? I am sure they know what they are doing We're still recovering from Labour's great recession and oil prices have fallen by about a factor of 2 in the last year. Link to comment Share on other sites More sharing options...
El Cid Posted August 17, 2015 Author Share Posted August 17, 2015 We're still recovering from Labour's great recession and oil prices have fallen by about a factor of 2 in the last year. I thought lower oil prices was a good thing, we should be booming. Link to comment Share on other sites More sharing options...
unbeliever Posted August 17, 2015 Share Posted August 17, 2015 I thought lower oil prices was a good thing, we should be booming. It is a good thing. Inflation is not growth. Link to comment Share on other sites More sharing options...
Obelix Posted August 17, 2015 Share Posted August 17, 2015 With low interest rates and QE both being a pressure to higher inflation, it makes one wonder why it is low, something must wrong somewhere, and then if we are meant to pay this QE money back, we cannot do that until we have some decent inflation? I am sure they know what they are doing It's low because recessions tend to be deflationary. It's doing exactly what it's intended to. nothing is wrong. We pay the QE back when it's convenient to do so - ie when inflation rises. Have you not been following above? More so than some posters on here know thats for sure.... Link to comment Share on other sites More sharing options...
El Cid Posted August 17, 2015 Author Share Posted August 17, 2015 It's doing exactly what it's intended to. nothing is wrong. Economic forecasters, not everyone trusts forecasters. They used to think Gordon Brown and Ed Balls were the dream team. Link to comment Share on other sites More sharing options...
unbeliever Posted August 17, 2015 Share Posted August 17, 2015 Economic forecasters, not everyone trusts forecasters. They used to think Gordon Brown and Ed Balls were the dream team. You can find a forecaster to say anything. The people in this field who I respect have been saying the same things consistently throughout and issued plenty of warnings about what Brown and Balls were up to, Link to comment Share on other sites More sharing options...
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