Luthori

[Ligbruderkrieg]

Bank of Luthori: Inflation to rise from 3.1 to 3.4% in Q3 projection, report says.
August 5684

The Bank of Luthori has today released a disappointing report for the government. It states that, due to the decision to cut interest rates by a whopping 2%, decided in 5683, inflation would rise by 0.3% in 5684 Q3. 

While not particularly damning for the government, it's still sending a powerful message that the methods aimed at reigniting economic growth through these cuts will negatively impact Luthorian consumers with rising prices at the grocery store. Chancellor Matthews' office has said that the Treasury was looking "with close attention" the rise of inflation.

While this steady increase in inflation has been notified as being "normal", considering the abrupt change in policy regarding Luthorian interest rates, the government is still pressured to act on these developments. Economists arguing that Luthori has left the "comfort zone" of inflation, located between 2 and 3%.

According to future predictions on the state of inflation, inflation in 5685 could reach between 4 and 6%, excluding exceptional economic circumstances that will render this projection obsolete.

National Labour Party national leader and leader of the opposition, Matt Wensworth, criticised the reports as being a "testament of the government's inability to properly care of its citizens", and has called on the government to "immediately implement measures" meant to slow down the grow of inflation.

Coupled with the Pound's value being weakened in the international monetary market compared to other international currencies, this decision to decrease interest rates seems to be slowly vindicating the government's economic plan, with Yeudi AIG bank creating an HQ in Fort William.

Asked about the Luthorian gov't's continued support for its policies, a Treasury Office spokesperson stated that:

The government trusts the long-term benefits that will be brought forward by the economic strategy pushed forward by Chancellor Hobart and Prime Minister Parker-Stanford. AIG's decision to create a headquarters translating into an attractive Luthorian market for foreign corporations, which is the effect searched.

The Bank of Luthori's Governor, Wilfried Vaugeois, stated that the Bank of Luthori, was, like the Treasury, "carefully monitoring the situation" and "assessing potential plans" to act upon the conclusions of this report.