New York, NY (PressExposure) October 08, 2010 -- "MannInternational" analysts were reportedly shocked at comments made by a member of the Bank of England's Monetary Policy Committee (MPC) on its inflation fighting credentials.
The member, Charles Bean, said ". . . in the short-term, we want to see households not saving more, but spending more" during a television interview. The suggestion was met with disbelief by analysts at "MannInternational" who said that Mr. Bean was effectively signaling that those hoping for higher interest rates on savings accounts would be better off going out and spending to help boost the UK's economy.
One analyst said, "This is the clearest indication yet of the direction the Bank intends to take in the immediate future. They're basically saying that relying on income from one's savings is an exercise in futility because interest rates will remain low, inflation may remain unchecked and, with the likelihood of another round of quantitative easing increasing by the week, things are probably going to get worse.
The British pound has shed 25% of its value against the US dollar since the credit crisis began and "MannInternational" believes that the worst is yet to come for the UK as its public sector lays off hundreds of thousands of workers only to then have to provide them with unemployment benefits.
The "MannInternational" analyst said, "Even those savers with an aversion to risk would be better off holding gold because even if it doesn't pay interest, it will still protect savers' nest eggs against the scourge of inflation".