Thursday, Jun 08, 2006
UK Interest rate on hold at 4.5%
Bank of England: Bank of England Maintains Interest Rates at 4.5%
As predicted the UK has kept UK interest rates on hold for the tenth month in a row.
Posted by webmaster @ 12:02 PM (180 views) Add Comment
18 Comments
- If you do not have an admin password leave the password field blank.
- If you would like to request a password allowing you to add comments and blog news articles without needing each one approved manually, send an e-mail to the webmaster.
- Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
- Please note that any viewpoints published here as comments are user's views and not the views of HousePriceCrash.co.uk.
- Please adhere to the Guidelines
1. denzil said...
Who was it that said rates would go up this month? Idiot!
2. uncle tom said...
Never mind Denzil...
That's 39 not out [smug..]
3. Dadm said...
At least the European Base rate has increased and is expected to increase each month until it hits 3.25%. That would be a 30% overall increase based on the original 2.5% earlier today.
I'd love to see at least half that increase in the UK, taking the base rate to 5.2%. The MPC can't fudge figures forever to hide inflationary pressures.
For those who have stretched themselves too far...........purchase some brown underpants as the next few months will be interesting times.
4. Waiting For The Crash said...
i am so fed up with the way this BOE system runs. Instead of dealing with problems they look at rigged data sip tea and pretend all is rosy???? Consumer spending up / house market looking good? WHat they mean is people are still borrowing at 4.5% and close to breaking point!!!
Someone tell me how many more months can the biggest cover up in history go on?
5. Paul said...
And the interesting thing is like inflationary expectations, the expectation of a rate rise will damage the economy more than an actual rise in rates.
So the longer the MPC continues to pretend not to hear the calls and pressure for a rise, the more uncertainty it creates.
The MPC are prize incompetents.
6. uncle tom said...
I still think it's more likely than not that we'll see more than one rate hike this year, and that the most likely UK rate at year end will be 5%.
There's a little bit of hysteria at the moment - which I think will blow over fairly soon - but beneath that the central banks of the developed world are slowly finding themselves caught between a rock and a hard place.
The consumer boom is heading for bust - and there's no clever solution in sight.
7. denzil said...
>>The MPC can't fudge figures forever to hide inflationary pressures.
The thing is whilst the Office for National Statistics (ONS) keep providing questionable monthly inflation stats the MPC's hands are tied.
On a related matter anyone notice the dip in the pound against the dollar the moment the MPC decision was made? Down 1.04% at the time of this message. With the Fed expected to raise for a 17th consecutive time later this month the downward pressure on the pound may force the MPC's hand.
8. denzil said...
Oh and BTW I always had complete faith in you UT ;-)
9. Ticktock said...
So the BOE is happy keeping base rates way below the level of (real) inflation is it?
It is happy to see asset bubbles continue to inflate accross the board as a direct concequence of this lax fiscal policy, and happy to directly support the transfer of wealth from young to old, and from poor to rich, that such a fiscal policy ensures?
Is this decission incompetence, or Cowardice?
10. Dadm said...
RPI for April was 2.6 which still seems low to me and CPI was 2.0.
Does anyone know of a more realistic measure of inflation?
These two measures both appear a fudge to me. Especially on the back of a 33% rise in fuel costs this year alone.
11. Dadm said...
A decent article from some time ago which seems to echo my feelings on the manipulated inflation figure:
http://personalfinance.iii.co.uk/articles/articledisplay.jsp?section=Tax&article_id=2643777
12. Nails said...
our gas bill was usally about £50 for quarter. This time it was near £150. Im sure thats not 2% inflation
13. Ticktock said...
Does anyone know of a more realistic measure of inflation?
It depends what you mean by inflation. The BOE does not wish to include asset price inflation in its calculations, just CPI, which suits its purposes better. However, anyone living in the real world knows that inflation is inflation, full stop. It cannot be neatly segmented to achieve a more desireable figure, for political ends, without building up big problems for the future.
Lets face it, the neo-capitalist system collapsed at the turn of the Centurary following the dot.com boom (which itself was a fiction designed to distract from the fact that the system had already failed). Global fiscal policy (i.e. low IRs) were a desperate attempt to salvage the situation, and have suceeded only in kicking the real problems into the 'long grass' . Nothing has been fixed, nothing at all.
The global economy is now a total fiction, fuelled by lies, central bank printing presses, and US military 'adventureism'.
The true concequences of such abstract failure are intollerable for the ruling global elite. After all, certain ideologies always predicted such an end, and have all sorts of 'old fashioned' views as to what should replace the status quo.
Before reality bites, i would suggest that the lies will get bigger, the deficits bigger, and the conflicts ever more bitter and widespread.
We are living through a period of major global change.
14. talking rot said...
Ticktock
Did you choose you name because you feel some link to clocks or to a certain brand of Red Bush tea?
I agree the current system has its faults but it is far better than the alternatives.
15. Joerushton said...
WATCH THIS INFLATION SPACE
Changes in foreign interest rates, like those seen in Asia and the USA recently, have the effect of raising the value of that countries currency. One of the reasons that the CPI is remaining statistically so low is that imports are currently so cheap. When the Asian currencies start ramping up, and imports start getting more expensive, watch the CPI jump dramatically. Then interrest rates will rise!!!!!!
16. harold said...
I think we cannot underestimate just what a hot political issue interest rates are in this country - much more so than on the continent. Because the economy is supported by consumer spending, and because very large numbers of people have therefore been encouraged to push themselves to the limit, ANY increase in IR will be politically very damaging to Blair and the government. Blair is hanging on (probably aiming for 10 years in the job) and will therefore try to keep the economic charade going for a while longer yet.
17. Ticktock said...
T.Rot.
The 'alternatives' are certainly much worse for some social groups.
I have no interest in clocks.
18. Not So Fast Sherlock said...
Ticktock
In what sense had the global economy failed even before the dot.com crash ?