Mervyn King calls in the forecasting experts for a word on inflation

The Bank of England has had some expert help with the February 2008 Inflation Report

Not much room for error there then.

Actually I popped into Blackpool yesterday to see Gypsy Petulengro only to find the BOE contract has been snatched by Gypsy Rose Lee. I asked about her sources , West Texas Light trends in Kansas ? MGEX Spring Wheats ? Pig bellies in Chicago ?.

It appears she relies on the man who runs the petrol station out on the Poulton - le - Fylde road. Ah! ear close to the ground, street smarts ? Street savvy ?

Well No. says Rose, Tariq Afiz who owns the place has a cousin who is chief currency trader at Goldman Sachs. It appears that the boneheads at the BOE give them a call now and then for an expert opinion. - so the bearers of sacks of Gold have been feeding them the line about low expectations, inflation finally conquered, expect to see it falling late Autumn, energy drops out of the equation ....

Swallowed it hook line and sinker, nice steady interest rates as a result... they have been cleaning up in the short term bond market. Luvvly Jubbly.

Can't go on for ever she said, polishing her crystal ball whilst doing abit of spring cleaning.

I asked her with information like that why she was still out there in all weathers (beautiful yesterday) having her palm crossed with silver by typists from Tipton.

Oh well she says...must have several strings to your bow..."You just never now what's around the corner".

Now that Mervyn King , he's a real gent, she says and her eyes sparkle ...beautifully manicured hands. Never done a real days work of course. But. She says. But. He pays on the nail, no problems there.

I suggest she taps him for a loan... How much ? she says. Try £25 Billion. I say.... You just never know...