Inflation Strike The High-pitched Level In 16 Years

Sept. 18, 2008 - PRLog -- London (Online-Unsecured-loans) : Inflation glowed up to a 16-year high in the month of August that made things much more difficult for the Bank of England. Things turned out to be worse when the Bank of England intended cut interest rates to relief the economic pain. It has been described as the worst financial market crisis of this century.

On Tuesday, the global stock markets toppled for the second continuous day. This situation has been further complimented by the collapse of Lehman Brothers the investment bank and the ongoing struggle of insurer of AIG to survive.

HBOS, the country's boastful mortgage lender also suffered from this crises. Its shares fell up to more than 25%. This instigated the Bank of England to invest 20 billion pounds into the financial
The Bank of England threw an additional 20 billion pounds into the financial system to relieve the strains, but the price of borrowing superlative funds for just a single day jumped more than a percentage point as compared to its highest point since April 2001.

In this context the economists mentioned there was bantam to suggest that the Bank of England was ready to cut interest rates shortly after gliding the utility bills thrusting inflation to 4.7% in August.

King even mentioned that he expected inflation to raise higher still and strip above the mark well into 2009, specially if the impotency of sterling prevailed.

"As the apex in CPI inflation is anticipated to be higher than three months ago, the peril that it may have a result on other prices and other costs is now bigger," King penned to the finance minister Alistair Darling.

"For this particular reason, the (monetary policy) Committee has become even more firmer in its content that a time interval of hushed economic growth is quite necessary to stifle pressures on prices and wages and revert inflation back to the expected target."

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