telegraph.co.uk: BoE's Martin Weale fears expectations of higher inflation will become ingrained
Fam IslamMarketing Assistant
BoE's Martin Weale fears expectations of higher inflation will become ingrained
The Telegraph - 31 Jan 2011
Bank of England policymaker Martin Weale, who joined Andrew Sentance to vote for a rise in interest rates this month, said on Monday he had been concerned about expectations of high inflation becoming ingrained.
Martin Weale is worried that there will be a push for higher wages.
Photo: MARINA IMPERI
He said a small rise in rates now would be preferable to dealing with the price of addressing high ingrained inflation.
Are you interested in long term profits, passive income of £500-£1000 each month — and complete financial freedom from investing in UK properties?Sign up for my brand new, free online property course to learn the proven way to use property as a vehicle to achieve financial freedom as the recession eases and confidence grows.
This is the very same information many have paid thousands to learn! It's valued at £199 per year and each week, I'll teach you everything I've learned while building the portfolios of thousands of my clients over the last 15 years. Learn from my experience and avoid making the mistakes I made!
You'll learn all this and more in just the first 3 weeks of this course:
 Plus, a special bonus: you'll receive Brett's regular video updates, delivered straight into your inbox, where he turns on his video camera and decodes the week's property news for you!
|
Join our newsletter list for FREE today and you'll receive as a bonus a complimentary PDF copy of Brett Alegre-Wood's best-selling book The 3+1 Plan!
You'll learn the safest time-proven strategies that will guide you and grow your portfolio during any economic boom, bust, recession or downturn.The 3+1 Plan is a step-by-step guide that will show you how, with just four properties, you will be able to fund the lifestyle you have always wanted. Even before you retire! Immediately you register for our newsletter we'll send you the PDF download link for this award-winning book so you can start reading right away...
| ||||||||||||
| |||||||||||||
'My concern is that, if businesses and pay-bargainers come to regard an inflation rate of 3pc-4pc as normal, Mr Weale wrote in the Guardian newspaper.
However, he said the recent data which showed a shock contraction in the British economy was 'alarming' and did pose a dilemma for the monetary policy committee.
'If growth resumes shortly, my concerns about inflationary expectations would remain,' he wrote. 'But were the recent weakness to mark the start of a sustained new downturn, inflationary pressures would be likely to fade without a bank rate increase.'
Reader comments for the article 'telegraph.co.uk: BoE's Martin Weale fears expectations of higher inflation will become ingrained'
You're invited to join in the discussion of this article. Do you have advice to share? An opinion or some feedback that adds to the discussion? Feel free to add it below! (Please note though that ALL comments are checked before they're posted.)
YPC Property News Update: Buy to Let mortgage is on the up
Brett reporting from Malaysia, should we open up an office in Malaysia?
How will the Euro affect you as an investor?
Is it realistic to have cashflow positive investment property 100% of the time?
How Much Capital Do You Need To Get Started In Property Investment?
How Quickly Should An Investor Build Their Property Portfolio?