Oops! CPI inflation rises to 3.7%. Zimbabwe here we come

“Inflation will soon be in double figures” says Governor of the Bank of England. “We can’t raise interest rates. That’s the only thing preventing David Cameron’s fiscal policy turning the country into a total wasteland.” Well he didn’t actually say that, but he might have liked to. The Governor’s mantra that inflation will eventually come down of its own accord, … Continue reading

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Hung parliament? Don’t tempt me.

Why did sterling fall to a 10-month low against the dollar yesterday? The answer is that it was mainly driven by political concerns. With the latest opinion polls showing that Labour is closing in on the Conservatives, the prospect is that we will have a ‘hung parliament’ this summer, which means that no single party will have an overall majority. … Continue reading

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Pound falls after Bank Governor’s Newcastle visit

On Wednesday the governor of the Bank of England, Mervyn King, came north and the exchange rate went south. It was his first visit to Newcastle for several years and occurred after transport links with the capital had been recently re-established. In an interview with Newcastle’s Journal newspaper, Mr King said: “That rebalancing of the UK economy that I have … Continue reading

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Pound rises to its highest value against dollar for 10 months

At one point yesterday sterling rose to $1.6850 against the dollar – its highest level since the middle of October 2008. Although this is still well down on the $2 to the pound level seen last July, it does mean that the pound has risen by a quarter since January 2009. Sterling also rose against the euro to its highest … Continue reading

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