Qualified advisers answering your
Financial Questions
call 0800 092 1245

Is inflation really set to make a comeback?

Today the revelation that at least one member of the MPC is concerned about the threat of inflation in the UK has focused the minds of many investors. While many believe that inflation will be subdued in the latter part of 2010 this is not guaranteed and it could become an issue for the MPC and could impact upon UK base rates at some stage.

This is a very tricky situation for the UK government and the Bank of England because ultimately if UK base rates remain too low for too long this could encourage inflation and if UK base rates rise this could kill stone dead any potential UK economic recovery. Finding a balance between these two ends of the spectrum is not easy but the Bank of England MPC consists of many experts in various areas of finance and economics and hopefully it should act as an early warning system.

Even though the Bank of England appears fairly adamant that inflation will return to its 2% target level this is in no way guaranteed. Inflation is always in the background and could potentially have a massive impact upon UK economic growth and UK economic strength in the short to medium term.

Share this..

Related stories

Financial Guides

Financial Calculators

Our useful calculators can help you get your finances in order:

Latest News


Helpful new tax year facts that could affect you and your money

Blog | Seven helpful new 2016/2017 tax year facts that could affect you and your money. Our recent online blog shares a brief outline on how to stay up to date.

Read more

Useful Links

Popular Searches

Please Enter More Details

Enter More Details