Tuesday, Jan 15, 2008
Is it 'safe' now?....
Firstrung: Interest rate hold will ease pressure on sterling
The Bank of England has decided to leave interest rates unchanged at 5.5% offering some much needed respite for Sterling according to currency specialists HiFX...Chris Towner, Currency Strategist at HiFX explains:"Sterling has been under considerable pressure following the Northern Rock crisis and concerns surrounding the UK economy. Although the market is now pricing in the high probability of a cut when the MPC next meet in February, plus another cut in the second quarter of 2008, it must be noted that GBP has already been sold off quite aggressively in anticipation of rate cuts....
Posted by converted lurker @ 11:53 AM (370 views) Add Comment
3 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. confused76 said...
True, IR hold will stop GBP landslide, but accelerate house price crash!
Great prospect!!
2. confused76 said...
we are in a structural mess, word of DavidSmith
the pound has much more to fall
http://business.timesonline.co.uk/tol/business/columnists/article3176841.ece
3. bystander said...
What does this really mean for sterling in the short to medium term, and at what level can we expect to see sterling return (I am extremely concerned by predictions of 1 fo1 GBP/Euro)? Was this written last week, and since then sterling has dropped even more against the euro? If traders have priced in for a reduction to take into account a probable rate cut in February, then why is sterling still going down? I feel there is something more sinister going on and that either traders are pushing for greater downward pressure to make bets and collect huge winnings or Crash and his incompitent chancellor are trying to devalue the pound, kick off huge inflation, making the 'pound in your pocket' and therefore debt priced in pounds worth less, thereby stiffing those sovereign states, large financials on bad debt repayment. Maybe the whole sub-prime was orchestrated by Bush and Brown, to devalue their currencies and save huge amounts op money. The yanks sold about $263 billion of national debt to the Chinese in 2006, which is now worth much less than it was, and with the rest of the word, especially USA, calling for the Yuan to be inflated, it will become less and less. It would be interesting to see who Crash sold GB debt to and what that is worth now.