Monday, Mar 05, 2007

Commercial sector against further IR rises

Guardian: Firms urge Bank: keep rates on hold

Economic advisors to businesses have urged the Bank of England to not rise interest rates, despite continuing growth in the economy and the threat of inflation. This advice comes on the back of a mass sell-off in global equity markets last week. The British Chambers of Commerce warned that another rise in interest rates could cause consumers to panic.

Posted by jellycaster @ 09:03 AM (146 views) Add Comment

10 Comments

1. paul said...

high inflation risk + high currency value = disaster waiting to happen.

Watch what happens if they leave rates on hold. The pound will lose value quicker than anyone can say "deflation".

Monday, March 5, 2007 09:34AM Report Comment
 

2. Surfgatinho said...

And the next cycle of bleating begins - must be nearly MPC day again!

Monday, March 5, 2007 09:42AM Report Comment
 

3. sovietuk said...

The Pound is already the lowest it's been for nearly 4 months. There is nowhere left to run. Ha Ha Ha Ha

Monday, March 5, 2007 09:49AM Report Comment
 

4. harold said...

It seems to have been the case that people were borrowing Yen and stashing it in £s. Now the 'carry' is unwinding people are flooding the market with unwanted £s and buying Yen. Could be nasty. The £ is even plummeting against the $ - ouch! Rates at 8% by the end of the week, anyone? (In my dreams perhaps).

Monday, March 5, 2007 09:55AM Report Comment
 

5. george monsoon said...

I am going on holiday in a few weeks, should I convert my spending money to Euro's now?

Monday, March 5, 2007 10:05AM Report Comment
 

6. dohousescrashinthewoods said...

and could it be time to buy Yen?

Monday, March 5, 2007 10:36AM Report Comment
 

7. Geed said...

Try again.....

"But with average debt levels standing at a historic high of 150 per cent of average income, consumer groups are warning that higher rates will have a devastating impact on overstretched borrowers.

'We are worried that there's a significant minority of people whose finances are precariously balanced on the edge of affordability, and they're the ones who are most at risk from interest rate rises,' said a spokeswoman from Citizens Advice, which recently reported a 15 per cent increase in the number of people coming to it with debt problems over the past year."

B#gger em! Learn to save or learn to do without!!! I'm in a sh!tty mood today....

Monday, March 5, 2007 10:43AM Report Comment
 

8. geed said...

Try again...

"But with average debt levels standing at a historic high of 150 per cent of average income, consumer groups are warning that higher rates will have a devastating impact on overstretched borrowers.

'We are worried that there's a significant minority of people whose finances are precariously balanced on the edge of affordability, and they're the ones who are most at risk from interest rate rises,' said a spokeswoman from Citizens Advice, which recently reported a 15 per cent increase in the number of people coming to it with debt problems over the past year."

B#gger em! Learn to save or learn to do without!!! I'm in a sh!tty mood today....

Monday, March 5, 2007 10:44AM Report Comment
 

9. harold said...

"Commercial sector against further IR rises"

Seems like a bl**dy good reason to wack up rates to me. And anyway, when is the the Commercial sector ever in favour of IR rises?

Monday, March 5, 2007 10:51AM Report Comment
 

10. lvmreader said...

What do these clowns think will happen when our currency is worth a 1/10 of what it is now.

The VERY DEFINITION of inflation. Every import will cost 10 times as much.

Rock and a Hard Place. When the Hard Place is a COuntry Size Garbage Crusher, choose the Rock.

Pujt up interest rates! Now!.

225 basis points over the next 8 months.

Monday, March 5, 2007 01:52PM Report Comment
 

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