17 Şubat 2011 Perşembe

Selling Britain by the Pound?

Andrew Sentance, a sole member of BOE's MPC, who has been calling for a rate hike since June 2010 is asking Mr King: Are you selling Britain by the Pound?

And today Pound jumped dramatically to $1,6170, recovering from yesterday's low of $1.5987. His comments helped the speculation that rates will rise soon in the UK.

Who is Andrew Sentance though? Is he to be called a speculator, a realist or "the odd one out" in the committee?

There is wide range of colours in his career palette, from private sector to academics and music. He's a former head of economic policy at the Confederation of British Industry and also had worked as chief economist at British Airways.

Mr Sentance is a star in an Essex-based pop group called "Revelation". He plays bass, guitar and is on vocals. How "cool" is that?

There is something even "cooler" I want to remind you. Annual inflation in the UK hits 4% led by high commodity prices (and VAT rise in January 2011 is yet to be blamed.)

Let's have a look at the implications of this inflation in daily lives:
An "uncool Londoner" who works full-time, stays in a rent house with no car or motorbike and lives 2 zones away from work spends:

- min £4 for transportation

- min £15 for food including breakfast lunch and dinner (obviously very modest dinner cooked at home)

- min £5 of his/her utility bills

- min £15 rent living in the cheapest accommodation

Therefore, a Londoner spends at least 40 quid per day just to inhale and exhale in this country! There is no entertainment, no travelling, no clothing, no cosmetics, no treats in this bill...

I don’t know if anyone is selling Britain by the Pound but it's getting quite expensive for sure - just a revelation…

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