Wednesday, September 20, 2006
A dove among the hawks
Posted by David Smith at 10:00 AM
Category: Thoughts and responses

The Bank of England's monetary policy committee voted 8-0 to keep Bank Rate (which is what it now calls it) unchanged at 4.75% earlier this month, but there were distinct differences of tone among members. Most thought that data was at least as strong as had been expected when hiking the rate from 4.5% to 4.75% in August. The exception was David "Danny" Blanchflower. who is concerned about labour market slack and the weakness of the US economy (he is, after all, based there). He may vote for a cut, though not until he is sure that winter wage settlements are benign. The rest seem set on a further increase. Minutes here.

Comments

Worth recalling that David Blanchflower replaced Steve Nickell as the labour market specialist on the MPC. Although Steve Nickell got himself a little boxed in as a rate-cutter - having once voted for a cut against the majority view he had to maintain that view unless there was evidence to justify changing his vote.

Posted by: Paul Bivand at September 20, 2006 11:10 AM

Rates are going up, up and away. 5.5% by mid 2007.

Posted by: Trader at September 22, 2006 02:57 PM
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