Comments on: Analysts expect more UK interest rate hikes soon http://www.financemarkets.co.uk/2007/06/06/analysts-expect-more-uk-interest-rate-hikes-soon/ Finance News | UK Personal Financial News & Daily Finance Market News Mon, 14 May 2012 17:44:18 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: Nadeem Walayat http://www.financemarkets.co.uk/2007/06/06/analysts-expect-more-uk-interest-rate-hikes-soon/comment-page-1/#comment-337 Nadeem Walayat Thu, 05 Jul 2007 22:22:13 +0000 http://www.financemarkets.co.uk/2007/06/06/analysts-expect-more-uk-interest-rate-hikes-soon/#comment-337 The Bank of England has lost control of inflation. The problem is they are ignoring the primary driver of future inflation which is the expansion of the money supply, which for the last 2 years has been running at above 10%, the last figure was 13.9% for May 07. This is having the effect of stoking up future inflation. Without addressing the causes of the money supply growth i.e. excess government spending, then the rate rises are only going to push the economy towards stagflation. More on this here - http://www.marketoracle.co.uk/Article1453.html The Bank of England has lost control of inflation.

The problem is they are ignoring the primary driver of future inflation which is the expansion of the money supply, which for the last 2 years has been running at above 10%, the last figure was 13.9% for May 07.

This is having the effect of stoking up future inflation. Without addressing the causes of the money supply growth i.e. excess government spending, then the rate rises are only going to push the economy towards stagflation.

More on this here – http://www.marketoracle.co.uk/Article1453.html

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