Tuesday, Aug 14, 2007
experts talk about IR and why they will continue to rise
msn: what next for interest rates?
The slide in inflation was driven primarily by food prices, which look set to rebound later in the year due to recent floods. Furniture also had a large impact - but the record monthly decrease in July, as sales kicked in, followed a record monthly rise in June. Petrol prices and energy bills were another factor, but with oil prices remaining high, these can’t be relied on to continue declining. So you could argue that these effects are effectively temporary downward blips.
Posted by sold out @ 09:11 PM (134 views) Add Comment
10 Comments
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1. Sold Out said...
i reckon there is no chance of a drop in IR as David keeps predicting.Its only going one way, up.
2. david20040_0 said...
More likely to go down surely with CPI at 1.9%
God it feels strange saying that. CPI at 1.9%
3. This comment has been removed as it was found to be in breach of our Blog Policies.
4. Scott said...
This could cause a hold instead of a rise in September. It is however only a blip before the inevitable, which is why the media with vested interests are making the most of it. 1.9% indeed, but what about the £1.3 billion debt economy we are in?
5. inbreda said...
David - can you explain why rather than just constantly saying "no it won't happen".
Dull otherwise.
thanks
6. david20040_0 said...
CPI is below 2%, markets taking a battering, BoE will lower rates.
7. Kev said...
Why does everyone keep referring to 1.9 and not 2.0? I read somewere that the exact figure was 1.9984, which, according to the maths I was taught at school, should be rounded up to 2.0. No wonder young 'uns nowadays have difficulty with maths! Look at the example they're set by the intelligent media.
8. Cityboy said...
and tomorrow inflation goes up again and everything changes...
the rates wont drop for some time, the whole world is in trouble...
9. inbreda said...
I get the connection with low cpi and lower rates (if only cpi were real!!) but not really with tanking markets. Not sure of the connection there.
10. Dr K said...
If the next move in IR is down, then we may aswell all pack up shop and close down! It would tell me that a HPC will not be allowed to occur. The Governments via the banks have already bailed out the stock market (I naively believed we were a free market economy!) and real inflation is ~6%, so IR's need to reach at least 7% before they have any effect. Bearing in mind they are at 5.75 and it has taken a year to go up 1%, it would suggest at least another 18 months before we hit 7-7.5% and in my part of Sussex (Horsham), that's another 25% increase in house prices. Around here, it is not slowing down! Very depressed!,