Tag Archives: Brian Swint

Barker Says BOE Should Print Money

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And yet another central banker who doesn’t understand monetary operations…

Has to be a new low for the BOE.

Barker Says BOE Should Print Money as U.K. Recession Worsens

by Jennifer Ryan and Brian Swint

Mar 13 (Bloomberg) — Bank of England policy maker Kate Barker said the bank’s decision to buy assets with newly created money is necessary to prevent deflation as Britain’s recession shows signs of worsening.

Printing money “is the best course in order to achieve our objective of keeping inflation to target in the medium term.” “The downside risks to growth, and therefore to inflation, identified in the February inflation report were in danger of crystallizing,” she said. Barker said the impact of the reduction in the benchmark to lower levels had become “successively reduced” with each cut, and lower rates on their own would be insufficient to revive growth.


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2008-07-28 UK News Highlights

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Highlights:

U.K. Hometrack House Prices Fall the Most Since 2001
Brown Says He Won’t Turn to ’70s Agenda After Defeat
Darling Considers Expanding Mortgage Bond-Swap Scheme, FT Says

 
 

U.K. Hometrack House Prices Fall the Most Since 2001

by Brian Swint

(Bloomberg) The average cost of a residential property in England and Wales slipped 4.4 % in July from a year earlier to 168,500 pounds ($336,000), Hometrack Ltd. said. Prices fell 1.2 % from June. “With no immediate end in sight to the current uncertainty, activity levels are likely to remain suppressed with prices remaining under pressure into the autumn,” said Richard Donnell, director of research at Hometrack. Prices “are now back to levels last seen in October 2006.” Demand for housing has declined 20 % in the past three months, Hometrack said.

Note how much higher prices are vs the US.

It’s another case of going up very fast and now working its way down towards a more historically normal trend line.

But as in the US, they never come down quite that far before turning up on a new path from a higher base as much of past ‘inflation’ remains indefinitely.


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