Today the pound opened lower again on the exchanges against the dollar. That means dearer petrol, dearer commodities, dearer imports from dollar related parts of the world including China. We are poorer as a result.
The MPC is like the drunk trying to walk along the pavement. They spend some of their time in the ditch of recession and falling prices because they underdo the money growth, and some of their time in the middle of the fast road, because they overdo the money growth and inflation.
Months ago I started warning they were overdoing the easy policy which was bound to lead to a lower pound and higher prices. That is exactly what is now happening. The Governor has to get ready to write another letter of apology. Why can’t they find people who can get it right?