delusionofgrandeur

Bank of England HQ

The rate of inflation in the UK as measured by the Consumer Price Index rose more than half a percentage point in July to 4.4%. This is more than double the target for CPI which is 2%

The Retail Price Index rose from 4.6% to 5% over the same period.

Merv King, chairman of the Bank of England will presumably be writing another letter to Prime Minister Gordon Brown explaining why they can’t fix the governments fiscal problems for them.

The obvious question now is whether the Bank of England have the guts to raise interest rates and save the currency at the possible expense of [some] of the economy.

This entry was posted on Tuesday, August 12th, 2008 at 1:54 pm and is filed under Credit Crunch, Economy, News.You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.