January 18, 2016
IT'S A DEFLATIONARY EPOCH:
Ultra-low interest rates could be here to stay, says Bank of England adviser (Larry Elliott, 18 January 2016, The Guardian)
The prospect of ultra-low interest rates persisting for years to come has been conjured up by a leading Bank of England policy after a further fall in oil prices and shares in London sinking to their lowest level since late 2012.Gertjan Vlieghe, one of the nine members of Threadneedle Street's monetary policy committee, the body that sets the official cost of borrowing, said debt, demographics and distribution of income could all depress interest rates.
With population decline in the rest of the world, ever fewer workers making ever more products ever more cheaply, and only the Anglospheric/Scandinavian economies remaining viable, how would interest rates go up?
Posted by Orrin Judd at January 18, 2016 5:40 PM