March 3, 2009
How to stop deflation?
Story link: How to stop deflation?
Quantitative easing is just one way that could ‘potentially’ ease the possibility of deflation, but it is by no means a definitive way of doing so.
It is good to see that the Bank of England are looking into new ways of stabilizing the economy, but so far, nothing they have done has been fruitful.
The Bank of England is set this week to begin “printing money” in a ground-breaking move that will mark its most forceful action yet to curb the slump in the economy.
The Bank’s Monetary Policy Committee is expected to act on Thursday, as soon as it is given a final green light from Alistair Darling to begin the so-called quantitative easing.
February 17, 2009
Deflation on the cards
Story link: Deflation on the cards
Everything in the news days seems to be the same, “the hardest times within 50 years”, seems to be a popular phrase.
Latest data suggest that the UK economy and the cost of living is at its lowest in 50 years, meaning that the UK is approaching deflation!
Politicians and analysts have warned that Britain is on the verge of deflation after economic data released this morning showed that living costs are rising at their lowest rate in almost 50 years.
Figures from the Office for National Statistics showed that the retail prices index, which includes mortgage costs, fell to just 0.1% in January following the recent falls in interest rates and cheaper fuel. This is the lowest RPI level since March 1960, and it is expected to enter negative territory soon.