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Tag: Monetary Policy Committee

Why calling for housing QE is not special pleading: Part 2

Why calling for housing QE is not special pleading: Part 2

If growing calls to use quantitative easing to directly stimulate weaker parts of the economy lead to a change in approach by the Bank of England it would leave a tricky question. That’s the question Sir Mervyn King, the Bank’s Governor, threw back at Treasury Committee member Andy Love last week. He asked: “Can you give me an example of the asset you think we should be purchasing. I asked the previous Chancellor and got no reply.” Mr Love gave…

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Reasons to be careful – December’s higher than expected inflation

Reasons to be careful – December’s higher than expected inflation

Consumer Price Inflation at 2.9% in December and up from 1.9% a month earlier… mmm… that’s not what the experts expected. Not by a long way. This morning’s story from Reuters published ahead of the inflation figures had its poll of experts plumping for inflation at 2.6%. No doubt there will be a lot of post-announcement rationalisation about the figures from economist, but in truth the City and economists at large have consistently underplayed the strength of inflation in their…

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If 2008 was bad for the housing market, 2009 looks much worse

If 2008 was bad for the housing market, 2009 looks much worse

There are plenty of scary figures in the latest forecast from the Council of Mortgage Lenders not least the expectation that half a million homeowners will fall into arrears. The expectation that 75,000 homes will be repossessed by mortgage lenders is pretty scary too, especially as this in practice would mean more repossessions than in previous peak of 1991 when all repossessions are totalled up. But for me the most disturbing prediction within the forecast is that residential property transaction…

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