r00lish67
Member of DD Central
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Post by r00lish67 on Jun 22, 2020 9:25:38 GMT
Another interesting article from Reuters;
"LONDON (Reuters) - Bank of England Governor Andrew Bailey said on Monday that the central bank should start to reverse its quantitative easing asset purchases before raising interest rates on a sustained basis, a reversal of long-standing BoE policy. "
That could have a negative effect on bonds and of course make you think about the risk reward of P2P. I doubt the BoE will be moving them up to a decent level for savers for a long time.
- it's every Government's favoured strategy to deal with debt, inflate it away.
"When the time comes to withdraw monetary stimulus" - I mean, we've not been able to consider unwinding for the last 10 years, and now if anything it seems even further off into the horizon. Seems a strange time to bring it up from him. Re: inflation, it's totally clear that everyone is completely unclear about it. There are good arguments for inflation to soar, and also for us to head further towards deflation. With no debt at hand, I'm hoping for the latter 
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r00lish67
Member of DD Central
Posts: 2,691
Likes: 4,048
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Post by r00lish67 on Jun 22, 2020 10:04:29 GMT
"Seems a strange time to bring it up from him"
Inflation is a good way of reducing, eroding, national debt. The miracle of inflation.
Maybe an independant BoE is at odds with the Government wanting to gerrymander a recovery.
Reducing VAT, taxes ( will we be surprised if futher tax cuts are announced?) is one way of bolstering economic activity, but also political futures. If it created enough real economy activity, inflation would follow, and as a consequence erosion of debt. Maybe the Government see's the benefit of inflation, and the Bank is opening up on it's plan to control it.
It's the first salvo..small arms fire.
Ah ok I see your point now, yes that makes sense, good thinking.
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