ca-uk Posted April 17, 2007 Share Posted April 17, 2007 Dear Gordon How's things? Where are you summering this year? Funny how we said i had to write a letter, but never said it had to be about inflation! We will, we will rock ya! Merv ------------------------- Dear Merv Not bad, nice to hear from you. No more busts man, we so groovy. Going to summer in Vegas, got some nice contacts out of some Labour scam to do with casino licensing. My butcher sent me over an extra tray of meat this week, i'll send it over to you and the missus. My boys in the ONS had an error on their calculations, so we'll be back at 2% by year end - promise! Gordie Quote Link to comment Share on other sites More sharing options...
ca-uk Posted April 17, 2007 Author Share Posted April 17, 2007 LONDON (Reuters) - A response from Chancellor Gordon Brown to a letter from the Bank of England explaining why inflation has risen to 3.1 percent will be published at 10:30 a.m., the Treasury said on Tuesday. "The Chancellor of the Exchequer's response to the letter he has received from the Governor of the Bank of England will be published simultaneously with the governor's letter at 10.30 a.m. today," it said in a statement. Quote Link to comment Share on other sites More sharing options...
Leonard Hatred Posted April 17, 2007 Share Posted April 17, 2007 I bet he claims that it's another "blip". Quote Link to comment Share on other sites More sharing options...
firsttimebuyer Posted April 17, 2007 Share Posted April 17, 2007 what impact will this have on house prices? Will they FINALLY crash? Or, as always, will they just keep going up? Me personally, i wont be affected as my mortgage is for fixed for several years. But what impact will it have on those looking to buy? Quote Link to comment Share on other sites More sharing options...
Willy Weasel Posted April 17, 2007 Share Posted April 17, 2007 what impact will this have on house prices? Will they FINALLY crash? Or, as always, will they just keep going up? Me personally, i wont be affected as my mortgage is for fixed for several years. But what impact will it have on those looking to buy? High IR will stop any new mortgages in their tracks - remember the BoE loans for home purchase figures are a good guide to HPI - these numbers are going to fall off a cliff this year IMHO which means HPI six months after that will be HPC Quote Link to comment Share on other sites More sharing options...
Willy Weasel Posted April 17, 2007 Share Posted April 17, 2007 Here it is: http://www.bankofengland.co.uk/monetarypol...etter070417.pdf Quote Link to comment Share on other sites More sharing options...
jp1 Posted April 17, 2007 Share Posted April 17, 2007 CPI Letter Quote Link to comment Share on other sites More sharing options...
Guest The_Oldie Posted April 17, 2007 Share Posted April 17, 2007 And the reply... http://www.hm-treasury.gov.uk/media/FEE/3D...onse_170407.pdf Quote Link to comment Share on other sites More sharing options...
tahoma Posted April 17, 2007 Share Posted April 17, 2007 And the reply... http://www.hm-treasury.gov.uk/media/FEE/3D...onse_170407.pdf I hope having to sign that drivel didn't interrupt Gordon's crayon drawing time. Quote Link to comment Share on other sites More sharing options...
Nick.. Posted April 17, 2007 Share Posted April 17, 2007 And the reply... http://www.hm-treasury.gov.uk/media/FEE/3D...onse_170407.pdf Did he sign that in crayon? It must be colouring in time, just before nap time Quote Link to comment Share on other sites More sharing options...
eek Posted April 17, 2007 Share Posted April 17, 2007 High IR will stop any new mortgages in their tracks - remember the BoE loans for home purchase figures are a good guide to HPI - these numbers are going to fall off a cliff this year IMHO which means HPI six months after that will be HPC But thats the joy of the new affordability mortgages. Rates rise .75% . Interest repayments rise from 5% to 5.75% or 15%. Affordabilty Mortgages can only lend out 15% less. Selling prices have to fall to compensate. Quote Link to comment Share on other sites More sharing options...
ca-uk Posted April 17, 2007 Author Share Posted April 17, 2007 let me turn to the reasons for the rise in CPI inflation to 3.1% from 1.8% a year ago was CPI only 1.8% a year ago? Quote Link to comment Share on other sites More sharing options...
Willy Weasel Posted April 17, 2007 Share Posted April 17, 2007 Both letters are a disgrace - Merv effectively says - "We're going to continue to sit on our hands" and Gordo is clearly happy with that. Also, what's with the handwriting of these two - Merv's 'Dear Chancellor' is in the handwriting of an 8 year old and Gordon appears to be using a thick felt-tip pen. Quote Link to comment Share on other sites More sharing options...
tahoma Posted April 17, 2007 Share Posted April 17, 2007 Did he sign that in crayon?It must be colouring in time, just before nap time Great minds and all that... Quote Link to comment Share on other sites More sharing options...
jp1 Posted April 17, 2007 Share Posted April 17, 2007 They are going to do nothing.. They will try to "see through the short term volaitlity" 3.1/4.9% inflation "is unlikely to alter the broad picture painted in Feb inflation report",and "expect CPI to fall back later in theyear" - ie ONS get fiddling you slackers! ie Merv will "remain vigilant" - translation: do nothing unless Balls pops up on TV, or Brown makes a comment in his no confidence vote this afternoon in the commons - expect more fence sitting by MPC Quote Link to comment Share on other sites More sharing options...
ca-uk Posted April 17, 2007 Author Share Posted April 17, 2007 why are the names of who the letters are to written in pen anyway?! Quote Link to comment Share on other sites More sharing options...
muggle Posted April 17, 2007 Share Posted April 17, 2007 OMG! Was that it?! Bit of an anti-climax Quote Link to comment Share on other sites More sharing options...
Willy Weasel Posted April 17, 2007 Share Posted April 17, 2007 why are the names of who the letters are to written in pen anyway?! I actually laughed out loud when I saw the handwriting. If it wasn't for the fact that those letters appeared on the official websites you would have thought it was some sort of wind up Quote Link to comment Share on other sites More sharing options...
Leonard Hatred Posted April 17, 2007 Share Posted April 17, 2007 BBC ticker says they are blaming "energy costs and consumer spending". They therefore have to raise rates, surely? Quote Link to comment Share on other sites More sharing options...
the_duke_of_hazzard Posted April 17, 2007 Share Posted April 17, 2007 Both letters are a disgrace - Merv effectively says - "We're going to continue to sit on our hands" and Gordo is clearly happy with that.Also, what's with the handwriting of these two - Merv's 'Dear Chancellor' is in the handwriting of an 8 year old and Gordon appears to be using a thick felt-tip pen. No secret what Merv thinks: "[We remain] determined to set interest rates at the level required to bring inflation back to the 2% target" Quote Link to comment Share on other sites More sharing options...
Pluto Posted April 17, 2007 Share Posted April 17, 2007 They are going to do nothing..They will try to "see through the short term volaitlity" 3.1/4.9% inflation "is unlikely to alter the broad picture painted in Feb inflation report",and "expect CPI to fall back later in theyear" - ie ONS get fiddling you slackers! ie Merv will "remain vigilant" - translation: do nothing unless Balls pops up on TV, or Brown makes a comment in his no confidence vote this afternoon in the commons - expect more fence sitting by MPC Interest Rate decisions are based on the Dollar not UK inflation. Inflation is allowed to go ballistic to underpin the dollar. All this letter writing is propaganda. Quote Link to comment Share on other sites More sharing options...
the_duke_of_hazzard Posted April 17, 2007 Share Posted April 17, 2007 If they don't raise rates I'll eat my hat. Careful reading of the response indicates that Brown _really_ doesn't want them to raise rates. Quote Link to comment Share on other sites More sharing options...
Smell the Fear Posted April 17, 2007 Share Posted April 17, 2007 They are going to do nothing..They will try to "see through the short term volaitlity" 3.1/4.9% inflation "is unlikely to alter the broad picture painted in Feb inflation report",and "expect CPI to fall back later in theyear" - ie ONS get fiddling you slackers! ie Merv will "remain vigilant" - translation: do nothing unless Balls pops up on TV, or Brown makes a comment in his no confidence vote this afternoon in the commons - expect more fence sitting by MPC I've closed out my May 0.25% rise position on betfair at a profit, and put money on no change for May. The odds: 14/1 for no change. Given the behaviour of the BoE and Brown only a fool wouldn't be taking advantage of those odds. Quote Link to comment Share on other sites More sharing options...
Layman Posted April 17, 2007 Share Posted April 17, 2007 No secret what Merv thinks:"[We remain] determined to set interest rates at the level required to bring inflation back to the 2% target" Yep, I'm very glad I got my bet on next month's IR rise on with Betfair a couple of weeks back. The odds have PLUMMETED today! Quote Link to comment Share on other sites More sharing options...
Guest The_Oldie Posted April 17, 2007 Share Posted April 17, 2007 http://news.bbc.co.uk/1/hi/business/6562723.stm "This is a thoroughly nasty set of data that means that essentially guarantees that the Bank of England will raise interest rates by a further 25 basis points to 5.5% in May," said Howard Archer, economist at Global Insight."Furthermore, there is a markedly increased possibility that interest rates will rise further still further out. Quote Link to comment Share on other sites More sharing options...
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