Adam Posen, a former Bank of England policy maker, said most of Britain’s inflation problem stems from Brexit and that he’d vote for a half-point interest rate increase to curb an upward surge in prices.
Agree with the sentiment but they're not all MENJust picked this up on social media.
So... let me get this straight:
* British Gas made a profit of £1.3bn between January & June
* BP announced profits of £6.95 billion between April and June alone
* Shell has profited by £9.4bn in a year
The MEN at the top:
* John Pettigrew, boss of National Grid received £6.5m bonus on top of his salary
* Chris O’Shea, chief executive of British Gas owner Centrica was paid almost £2m last year in salary and benefits
* Centrica's non-executive directors were paid almost £1m
* Scottish Power's CEO Keith Anderson is on £1.15m.
* E.On boss Michael Lewis is on £1m
* EDF's Simone Rossi is also on £1m
* And their top execs enjoyed a share of £4.65m
* Peter Simpson of Anglian Water earned a £1.3m pay package
* Welsh Water bosses awarded themselves bonuses of over £930,000
* Severn Trent bosses awarded themselves bonuses of £5.56m
* Thames Water's Sarah Bentley, received a £727,000 bonus on top of her £2m annual salary
Meanwhile there are...
* People who haven't had breakfast and/or lunch TODAY, because they can't afford it.
* People using FoodBanks because food is becoming more of a luxury than a necessity.
* Children celebrating a birthday without presents.
* Parents worrying about new school uniforms - and some schools enforcing rules which are not cost-effective.
* People who can't get to work because they can't afford to put petrol in their cars/pay for public transport anymore.
* People who are working so much they're making themselves ill, and they STILL CAN'T AFFORD to pay their bills.
* People who have been given fines by these same energy/water companies because they couldn't afford to pay their bills in the first place - increasing their debt.
* Customers being told to do STAR JUMPS TO KEEP WARM for crying out loud!
* Hose pipe bans when gallons of water leak away everyday.
* Elderly people NOT DRINKING because they're worried about running out of water!!!
All this and energy prices are set to rise up to 75% in October...
THIS IS MADNESS!.. I'm all for supporting profits ..I'm not for supporting greed at the cost of lives of others..
Something needs to change..
Why are customers' money being used to make life more comfortable for those who are making life more intolerable for the rest of us?
The worrying thing is the BoE were saying inflation would hit around 5% just 6 months ago, when the world and his wife could see it was always going to hit nearly double that, so now they are going to extremes in the other direction by taking about a 5 year recession etc
Raising interest rates is what we have always done and the BoE know no other way of trying to address the current situation, its using 19th and 20th Century fiscal policies to deal with 21st Century issues, a bit like Bill Gates putting more ink in his ink well because Microsoft has having software issues.
The energy thing is just plain bonkers, of course we could just cap the cost. The suppliers would then be forced to put pressure on the producers. Oil and gas production needs an outlet just like any other product and if the biggest nations got together they could force this to happen, but they won't as they are lining their own pockets and do not want to miss out on this current licence to print cash and build even bigger reserves of cash.
The BoE are always terrible. Economists in general are terrible at predicting anything. It is almost impossible to create a model that predicts rapid change. They are always too short on the way up and when the curve starts to flatten thy are too long. When we look back in 10 years time they'll have an immaculate model telling us exactly what happened, what the triggers were etc but looking forward with any kind of accuracy is next to impossible for them. They would be better off just using their judgement than a model.The BoE have been pretty crap under Andrew Bailey. They were slow to react to inflation at the start and are now playing catch up. Their forecasts have been on the low side regarding inflation and they refuse to mention the 'B' word when it comes to things effecting economic growth.
It varies from country to country but a country gets somewhere between 60 and 90 % of the revenue from their oil and gas production.BP made massive changes over the last few years, they’re pulling in big profits generated in Oman, Egypt, Azerbaijan etc. if you want a fair society the surely those profits should also be part distributed in those nations too?
Funny how they changed their tune in 2008 when they quantitively eased and printed hundreds of billions of pounds which they handed to their pals in the banking sector who kept it for themselves. I wonder if they would print some spare cash for me or you next time we fall on hard times
Bowing to political pressure to introduce price caps have, in the long term, proven to destroy provider competition by making it impossible to enter the market, especially at a time of energy price fluctuation.
Jonny I don't really understand economics and stuff but would be interested in what you think what other tools should the BoE haveIt wont.
The bank of england's purpose is to control inflation, but the only tool they have to do so is interest rates.
It's like a builder trying to build the eiffel tower with a hammer.
The B of England are obviously independent of government now, but therein lies the rub; whatever additional powers they are given would be to the detriment of governments ability to shape economic policy.Jonny I don't really understand economics and stuff but would be interested in what you think what other tools should the BoE have