Following close behind the recent Bank of England MPC meeting the US Federal Reserve will make an announcement later today on the state of the US economy and any interest rate decision. Personally I wouldn't expect any changes ahead of the meeting on President Obama's recent decision to extend tax breaks to middle America.
Other news related to the MPC decision to leave rates on hold. The mickey mouse CPI inflation figure rose "unexpectedly" to 3.3%. The unexpectedly part being due to the expected VAT rise to 20% which doesn't take place until 4 January, but is expected to trigger a further increase in inflation.
What is the chore brought on by this failure to maintain inflation at 2%..... a letter to the Chancellor!
I would suggest the "unexpected" need to take their blinkers off re. the MPC's "in"credible handling of interest rates if they have confidence that the MPC can stoke the economy whilst controlling inflation. Personally it feels like they are re-stoking the conditions that gave fuel to the credit crunch in the first place.
For reference the truer RPI measure rose to 4.7%, so well done to anyone who has managed to stay invested in the NS&I Index linked savings certificates. With no new issues the NS&I Index Linked savings certificates are closed to new subscriptions but existing holders should think hard about rolling over their investment when the anniversary arrives. I for one will be doing so in a product that has served me well.
Other news related to the MPC decision to leave rates on hold. The mickey mouse CPI inflation figure rose "unexpectedly" to 3.3%. The unexpectedly part being due to the expected VAT rise to 20% which doesn't take place until 4 January, but is expected to trigger a further increase in inflation.
What is the chore brought on by this failure to maintain inflation at 2%..... a letter to the Chancellor!
I would suggest the "unexpected" need to take their blinkers off re. the MPC's "in"credible handling of interest rates if they have confidence that the MPC can stoke the economy whilst controlling inflation. Personally it feels like they are re-stoking the conditions that gave fuel to the credit crunch in the first place.
For reference the truer RPI measure rose to 4.7%, so well done to anyone who has managed to stay invested in the NS&I Index linked savings certificates. With no new issues the NS&I Index Linked savings certificates are closed to new subscriptions but existing holders should think hard about rolling over their investment when the anniversary arrives. I for one will be doing so in a product that has served me well.
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→US Interest Rate meeting.
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