BoE's Dale: Economy broadly flat - paper

LONDON Fri Nov 23, 2012 12:22pm GMT

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LONDON (Reuters) - Britain's economy is neither worsening nor showing signs of strong growth, Bank of England chief economist Spencer Dale said in a newspaper interview published on Friday.

"For most people, if you ask them what's happening to business conditions now, the adjective I hear is 'it's sort of flat'. Things aren't going downwards, but likewise we're not yet seeing any signs of very strong growth," he told the Yorkshire Post.

Dale has been the most hawkish of the current Monetary Policy Committee members. In July he was one of only two policymakers to oppose increasing the central bank's asset purchase target to 375 billion pounds and this month he voted with the majority against another round of quantitative easing.

"At some point in the future, and I think this will be a quite considerable time in the future, based on our current forecasts, we will start to reverse QE," he said.

He added that discussion on the MPC at the moment was "intense" as nobody could be sure of the precise course needed to hit the central bank's 2 percent inflation target.

(Reporting by David Milliken and Olesya Dmitracova)

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Comments (2)
DR9WX wrote:
If they are right we won’t get hyperinflation.

The people who need to be right are the central bankers of USA, Europe and UK.

So, three men all working together to ensure nothing goes wrong. Each working independent of the other.

This assumes the rest of the world continues to use dollars as the reserve currency. So, why are the rest of the world buying gold?

Nov 24, 2012 12:02pm GMT  --  Report as abuse
DR9WX wrote:
Broadly flat is bad, very bad.

In our debt money system, money is borrowed into existence. No problem.
The borrowed money is paid back, over time. No problem.

However. we also have to make interest payments. Where does that money come from?

It comes from other people borrowing money. More and more people have to borrow money otherwise the interest payments can’t be made and then people are forced to default.

Providing the economy doubles every 36 years we are OK.

Has the economy grown at all for five years? No

That is why we have QE, so the interest payments can be made.

Seriously people, without growth we are in trouble.

Either the people borrow money for high ticket items. The government borrows money to waste. Or the corporate sector borrows money. Someone has to borrow massive sums of money to keep the financial system running.

Etc Etc Etc whatever whatever whatever.

Central bankers, politicians, reporters, media people, lawyers, doctors, engineers and most economists don’t get it. To be honest close to seven billion people do not get it.

blah blah blah

Nov 24, 2012 12:13pm GMT  --  Report as abuse
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