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HOLA441
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22 hours ago, fellow said:

Good chart.

Some things from the report:

1. They have sold about 100Bn of bonds 11% of the holding so far.

2. They intend to sell a similar amount next year.

3. QE remains firmly in the BOE's tool-belt for potential use in the future.

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9 minutes ago, Mandalorian said:

Is that right? 🤣

Yup.

I’ll post a link when I am back on a lap top

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14 hours ago, Mandalorian said:

No -  I mean THEY might think they can QE at will.  Mr Market thinks otherwise.

Fair enough, but I post the link anyway:

https://www.bankofengland.co.uk/speech/2023/july/dave-ramsden-speech-on-quantitative-tightening-chaired-by-money-macro-and-finance-society

Quote

Although QT is designed to operate in the background, it has the important benefit of reducing the risk of a ratchet upwards in the size of the central bank balance sheet over time, if successive policy cycles meet the effective lower bound on interest rates.footnote[9] That in turn should increase the headroom and flexibility for the central bank to be able to use its balance sheet in the future in pursuit of its monetary and financial stability remit, should that be needed.

 

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12 hours ago, Barry78 said:

If we accept the BOE and Govt stopped house prices from fully dropping in 2008/2009 and there is no ammunition to use or family silver to sell, just how low can this go?

I think -20% nominal. Apparently the "clever" London money is already looking to offer at this level.

Not sure about the real fall - maybe an extra 15%?

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I still like this one, its getting better with time:
Will get pretty interesting at 2001 Q1 inflation adjusted prices, especially if UK inflation gets back to around 2% swiftly.

image.thumb.png.6daa817702ed1beebe7a9ef0f2b0f3d4.png

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On 14/10/2023 at 18:10, DarkHorseWaits-NoMore said:

I still like this one, its getting better with time:
Will get pretty interesting at 2001 Q1 inflation adjusted prices, especially if UK inflation gets back to around 2% swiftly.

image.thumb.png.6daa817702ed1beebe7a9ef0f2b0f3d4.png

But doesn't this graph say that house prices are already low at the moment, as they are below the long term trend? Doesn't seem right to me, what am I missing?

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On 22/10/2023 at 08:42, Drat said:

But doesn't this graph say that house prices are already low at the moment, as they are below the long term trend? Doesn't seem right to me, what am I missing?

The monthly repayment cost.

Let's say 'they' manufacture another 'crisis' and drop rates to zero, I think property may look ok at 2% rates? Especially with the pay rises since 2020.

If rates continue at 5%+, then it will be expensive, even if they're cheaper than the mythical trend line on a chart

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