Bank Of England Says It Chooses Recession Over Inflation In Monetary Policy

[Economy 52,857]

https://amp-theguardian-com.cdn.ampproject.org/v/s/amp.theguardian.com/business/2022/may/01/bank-of-england-duty-bound-to-trigger-recession-to-curb-inflation?amp_gsa=1&amp_js_v=a9&usqp=mq331AQIKAGwASCAAgM%3D#amp_tf=From %1%24s&aoh=16514255190522&csi=0&referrer=https%3A%2F%2Fwww.google.com&ampshare=https%3A%2F%2Fwww.theguardian.com%2Fbusiness%2F2022%2Fmay%2F01%2Fbank-of-england-duty-bound-to-trigger-recession-to-curb-inflation

 

The Bank Of England has stated that it must raise rates agressively to reign in high inflation which hit 7% at all costs even if it means causing a recession bluntly suggesting it's duty to price stability outways any desire to stimulate job growth or economic strength

 

It also pointed out in the current environment wage growth does not match inflation meaning demand that exceeds supply capacity is not a positive in the economy and does more harm than good

[bionic 50,111]

OK what does this actually mean  

The UK bank chooses to protect price of goods over protecting purchasing power??? Right wing governments protecting corporate interests, I am shooketh

[Lona Delery 7,227]

good

[KORG 4,756]

This means they're declaring a "screw the people" policy. Of course, anyone earning upwards of £500,000 won't feel a thing, it's simply the "little people" who will pay the price with job losses, losing their houses, and the end result always being a higher suicide rate.

We have nothing in place from the conservatives other than contempt for the population - which is the tory manifesto.

At this point, having been born in 1988, I have lived through the aftershock of "wigged-hitler" Margaret Thatcher, useless Currie shagger John Major, then the mass uplift under Tony Blair... then the awful wars, then the crash.. Sleeping Scotsman Gordon Brown & then the reintroduction of the tories.. "we will fix this!" They proclaimed... and we got Brexit, Austerity, BORIS JOHNSON LEADING THE COUNTRY, a terribly dealt with pandemic, draconian laws sneaking in, a more and more ABSURD set of MPs who are like cartoons and as bright as a smashed light bulb.. 

I'm honestly sick of it. At what point are these BASTÀRDS going to stop trying to crush the general public to line their own pockets & continuously embroil themselves in controversy after controversy?

We've got rid of a pig fùcker, replaced him with a useless out of touch homophobe & replaced her with the biggest steaming pile of pure shìt to have ever walked the earth, a man who cannot adhere to laws he inflicts upon the country. 

We are living in insanity and I would 100% support Guy Fawkes being resurrected and assisted toblow those cùnts to smithereens.

[Economy 52,857]

35 minutes ago, KORG said:

This means they're declaring a "screw the people" policy. Of course, anyone earning upwards of £500,000 won't feel a thing, it's simply the "little people" who will pay the price with job losses, losing their houses, and the end result always being a higher suicide rate.

We have nothing in place from the conservatives other than contempt for the population - which is the tory manifesto.

At this point, having been born in 1988, I have lived through the aftershock of "wigged-hitler" Margaret Thatcher, useless Currie shagger John Major, then the mass uplift under Tony Blair... then the awful wars, then the crash.. Sleeping Scotsman Gordon Brown & then the reintroduction of the tories.. "we will fix this!" They proclaimed... and we got Brexit, Austerity, BORIS JOHNSON LEADING THE COUNTRY, a terribly dealt with pandemic, draconian laws sneaking in, a more and more ABSURD set of MPs who are like cartoons and as bright as a smashed light bulb.. 

I'm honestly sick of it. At what point are these BASTÀRDS going to stop trying to crush the general public to line their own pockets & continuously embroil themselves in controversy after controversy?

We've got rid of a pig fùcker, replaced him with a useless out of touch homophobe & replaced her with the biggest steaming pile of pure shìt to have ever walked the earth, a man who cannot adhere to laws he inflicts upon the country. 

We are living in insanity and I would 100% support Guy Fawkes being resurrected and assisted toblow those cùnts to smithereens.

 

53 minutes ago, bionic said:

OK what does this actually mean  

The UK bank chooses to protect price of goods over protecting purchasing power??? Right wing governments protecting corporate interests, I am shooketh

U guys are going on about Conservatives... The Central's Banks mandate is always the same. It does not matter if a left or right wing party is in power. In fact when they were first established in the early 20th century they were made to operate seperate from the Government on purpose to prevent politics from potentially influencing their decisions as much as possible

 

Here in Canada, in the US and in pretty much every other Nation the general take is the same

 

Also @bionic what u said about purchasing power is exactly what they are trying to maintain. When u get demand that cannot be met by supply inflation always far outstrips wage gains. This is effect is even worse in times like that than during recessions as far as lost purchasing power goes

 

[bionic 50,111]

3 minutes ago, Economy said:

 

U guys are going on about Conservatives... The Central's Banks mandate is always the same. It does not matter if a left or right wing party is in power

 

Here in Canada, in the US and in pretty much every other Nation the general take is the same

 

Also @bionic what u said about purchasing power is exactly what they are trying to maintain. When u get demand that cannot be met by supply inflation always far outstrips wage gains. This is effect is even worse in times like that than during recessions as far as lost purchasing power goes

 

So am I right:

Recession = My $100 can buy me less groceries

Inflation = My $100 of groceries is less than it is now

[Better Day 5,766]

Fishy Rishi at it again. 

[Economy 52,857]

8 minutes ago, bionic said:

So am I right:

Recession = My $100 can buy me less groceries

Inflation = My $100 of groceries is less than it is now

Depends what u mean... Inflation generally doesn't go all the way down to 0% so even in a recession money tends to loose its value slightly so that $100 is gonna loose value either way

 

But in general inflation is A LOT lower during recessions (in fact if it's severe enough like the depression in the 1930s you can even get deflation but that's very rare). Your $100 looses a lot less value during a typical recession than when an economy is overheating and inflation starts to rise A LOT faster than wages

 

Although groceries isn't the best example of inflation rate dynamics because it has a super low elasticity since ppl always have to buy them regardless of the economy and they are impacted a lot more by weather/harvests or disruptions like the Ukraine-Russia war than they are by the state of the economy

 

But most goods in general inflate faster in the last stage of the economic cycle than they do in recessions and recoveries

 

 

[Economy 52,857]

7 minutes ago, Miss Dolly said:

Fishy Rishi at it again. 

Who's fishy Rishi?

[Economy 52,857]

32 minutes ago, Lona Delery said:

good

It's unfortunate the pandemic disruptions and war on Ukraine is causing the economic capacity ceiling to be restricted at a lower level than it otherwise would be

 

If these disruptions weren't there the demand could peak at a higher level before hitting capacity and triggering high inflation and the economy could of reached a better place 😐

[Lona Delery 7,227]

6 minutes ago, Economy said:

It's unfortunate the pandemic disruptions and war on Ukraine is causing the economic capacity ceiling to be restricted at a lower level than it otherwise would be

 

If these disruptions weren't there the demand could peak at a higher level before hitting capacity and triggering high inflation and the economy could of reached a better place 😐

definitely, but with everything going on atm theyre making the right call, cuz well be entering a recession sooner or later anyway... at least theyre looking out for everyones savings. the european central bank should take some notes 

[Better Day 5,766]

16 minutes ago, Economy said:

Who's fishy Rishi?

The Chancellor, Boris Johnson’s right hand man

[Economy 52,857]

1 minute ago, Lona Delery said:

definitely, but with everything going on atm theyre making the right call, cuz well be entering a recession sooner or later anyway... at least theyre looking out for everyones savings. the european central bank should take some notes 

I think they took too long to get off ultra low rates and now they have to be more agressive than they otherwise would have to of been

 

But given uncertainty over lockdowns I get why they had to be cautious too. In their shoes I suspect I would if had a hard time deciding what to do especially in Q2, Q3 and Q4 of 2021 when there were signs of capacity constraints and inflation yet lockdowns and COVID waves provided so much uncertainty. It's like do you raise rates or leave it. Was a tough call

[Economy 52,857]

1 minute ago, Miss Dolly said:

The Chancellor, Boris Johnson’s right hand man

So is he an MP?

[Nathan 2,079]

11 minutes ago, Economy said:

So is he an MP?

Yes, and a billionaire