Wednesday, Jun 20, 2007
Next month for sure
BBC: BoE divided over interest rates
The Bank of England's decision to keep interest rates on hold at 5.5% this month was agreed by a vote of just five to four, minutes have revealed
Posted by holding out @ 10:25 AM (168 views) Add Comment
18 Comments
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1. fahrenheit451 said...
Oh well, roll on July for the next episode, same time, same place, but hopefully a little bit more exciting.
If it's another .25% rise they are just proving that its "Slowly Slowly Catchee Monkey".
Followed by "Boom Badda Boom, Crash"
2. Seenitallbefore said...
Agree. The reason, I'm convinced that it is "Slowly Slowly Catchee Monkey" is that it is giving the members of the MPC time to re-shuffle/offload any personal property risks they have themselves ahead of letting the foodgates open. I think that each of the members should be obliged, under the terms of their contracts, to declare personal interests linked to property investment. This could help with transparency issues regarding who voted what way and why. Maybe the require to declare is already in place. Can anyone enlighten me? Otherwise as they are a Public committee body perhaps the information could be prised out of them via. a Freedom of Information (FOI)request.
MP's recently voted for FOI requests to excempt them from the need to detail their expenses (wonder why?) and as such this is probably the get out clause that Brown would use to excempt MPC members from declaring theirs.
It seems to be happening all around us. Take for example the smoking ban that will kick in on 1 July. Now, whether or not you are for or against it, the issue remains that when Caroline Flint (Health) says to the media "it is not only about passive smoking of the customers in say a bar, it is also about protecting the staff serving behind the bar" I notice this concern for staff welfare does not extend to the House of Commons (subsidised by the taxpayer) Bar. And, the get out clause "oh it is a Royal Palace" and as such it is exempt from English Regulations. So the health of the staff in the house of Commons don't matter then? Yeah right. On that basis I will go around Windsor Castle on Saturday afternoon with a fag hanging out of my mouth and when one of the little wardens walks up to me and asks me to stub out I shall remind them politely of this quirk that allow Royal building to skirt the issue.
Rant over. Hope some of you agree?
3. sovietuk said...
Get shot of the idiots on the panel who opposed the rise. They are just a useless waste of space.
4. waitingfor hpc said...
while they dither i am getting 6% return on my money at Sainsburys bank!!! the markets have already moved. these guys are dreaming that all will be ok.
it is their and the govt's mess - now they pay the price
5. confused76 said...
As I said before on this blog, MPC is in for either a big reshuffle or King's resignation. This is the second time the powerless King is outvoted at a crucial time (first time when IR was lowered in Aug 05)
6. wage slave said...
The MPC are all Gordon's puppets.
Even the UK treasury is now offering higher interest rates on it's bonds, so how the MPC cannot raise rates is beyond me.
7. Scott said...
Like I have said before, time is on our side.
8. Orwell said...
According to Radio 4 this morning, Dixons (or whatever hedge fund now owns them) say that the IR rises have had no impact on consumer spending on electrical goods (this surely is what they were intended to hit, the consumer white goods market?), and food is higher priced, so expect it to be a close call on a 0.5% rise in July (or as I suspect August)!.
9. Planning4acrash said...
Low short term rates are the public face. Brown is waiting until the rest of the world catches a chill so that he can blame the global economy for a crash. If the bank induces a crash earlier, it will be softer, but the blame will fall squarely on Brown's lap at the least favourable time.
10. harold said...
"The MPC are all Gordon's puppets."
wage slave, maybe - but the question is does GB have strings attached to his arms also?
11. mrmickey said...
This is the great thing about running the economy by committee, when real action is required everybody just looks dumbly at each other then goes back to sleep.
12. george monsoon said...
Whoever it is that is driving this mess either government, banks or even the Bilderberg group, is only in it for themselves. It is quite apparent that someone is lining their own pockets for the future and who cares what the happens to everyone else.
13. royston said...
Harold,
GB is clearly controlled by how history will record his term as Chancellor - clearly, he chose to let his successor 'claim the credit' for 6%+ interest rates.
14. financial planner said...
Kate Barker will do / has done everything possible to a) stay on the MPC (reappointed twice by GB) and b) avoid an HPC without the fabled increase in housing supply - that she has written big papers on that Ministers constantly quote from. They were wrong to do so time and time again. Apparently, without an increase in supply there can be no HPC. Balls!
15. confused76 said...
FP...
"Apparently, without an increase in supply there can be no HPC. Balls!"
so, what are they worried about? just pump up the rates! :))
16. maddison said...
All it needs to be is a bigger differential between demand and supply to change the House Price Market. I think people are confusing reducing demand (ie making it more expensive) with increasing relative supply! So I agree with Confused76.
17. royston said...
Oh, they know perfectly well that big hikes in interest rates will bankrupt the overstretched and cause a HPC. What they want is something that has never before been achieved, in any country, at any time - a soft landing! They think that by slowly and steadily increasing the supply, house prices will become affordable again, and in such a way as they won't get flak. I understand their motives, but this is pure fantasy.
18. george monsoon said...
Royston, I think you may be asuming that Politicians have an ounce of common sense.