Write a 100 word minimum commentary, analyzing the posting from the other student using the recent principles of economics you have learned. Your commentary should explain in your own words what you have learned and what you can add to the analysis as helpful comments. Do not just simply agree and repeat what you read, but instead submit new ideas that you can add to the analysis. You need to connect to the principles from the most recent section of the course most recently completed. REQUIRED: You must use terms/principles from that section of the course. Please type the terms in bold (or use CAPS).


comment this:

The article generally talks about that the bank of England indicated that the interest –rate increase are growing stronger. And the Monetary Policy Committee(MPC) said that interest-rate argument were becoming more balanced for some officials, but all members wanted to see more evidence before it would increase the key interest rate from a record low. Also, some of the MPC doubt the sense in running ultra-loose policy although the economy is growing over 3 percent a year and price in the   housing market increases.


As we know, the key measure to increase economy is decreasing unemployment rate, also low unemployment could stabilize the business cycle. And the central bank said that MPC has lots of views about slack in the labor market.  Under Governor Mark Carney’s push, the officials keep borrowing costs low, and the version focused on unemployment and he indicated that jobless rate fell faster in the future. Obviously, when the rate increases start, the borrowing cost will remain a very low level. And it lead to that financial intermediaries have incentive to gather more funds, which will increase the demand of pound on the foreign exchange market.


Furthermore, investment spending and inflation are really important for economy. According to the Bloomberg’s monthly survey of economists, investors are forecasting the price in a rate increase in the first half of 2015. The inflation rate is the percent change in prices from one month to the next, or one year to the next. According to forecasts published, the BoE indicates the U.K growing 3.4 percent this year and 2.9 percent in 2015, and the inflation will average 1.8 percent both year.