The Bankwatch

Tracking the consumer evolution of financial services

Early warning signs showing up for higher interest rates and inflation

Reading between the lines of economy and business stories confirms that the massive injections of government money (Quantitative Easing) over the last 3 years is coming home to roost as expected in higher interest rates and inflation.

Look for 1983 style interest rates (in some countries), inflation and sovereign defaults in the next few years.

Britain triggers global inflation alarm | FT

Data this week showing the UK’s consumer price index hit 3.7 per cent in December fuelled that concern and sent benchmark British borrowing costs to an eight-month high of 3.72 per cent.

 

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Written by Colin Henderson

January 22, 2011 at 00:32

Posted in Uncategorized

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  1. […] This post was mentioned on Twitter by Caroline Pandey, Finno.nl. Finno.nl said: Early warning signs showing up for higher interest rates and inflation: Reading between the lines of economy and… http://bit.ly/hIg9R3 […]


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