Wednesday, Feb 20, 2008

Loving the bubble...

BBC: Bank voted 8-1 for cut to 5.25%

''The Bank of England's rate-setting Monetary Policy Committee (MPC) voted by 8-1 to cut interest rates to 5.25% earlier this month, minutes have shown.''

Posted by hpwatcher @ 09:55 AM (673 views) Add Comment

9 Comments

1. paul said...

"More cheap money, yes - that's the answer to the problems caused by too much cheap money"

You do have to wonder why we pay so much money to these part-timers armed with hammers thinking everything is a nail.

Wednesday, February 20, 2008 10:19AM Report Comment
 

2. su said...

So Blanchflower was the odd-man-out again and voted for a larger cut.

Wednesday, February 20, 2008 10:46AM Report Comment
 

3. Pelethar said...

That idiot Blanchflower voted for a 0.5% cut. What is he on? Why on earth is he even on the MPC??

Wednesday, February 20, 2008 10:49AM Report Comment
 

4. jack c said...

No real surprise that DB was the odd man out - he obviously favours larger cuts to follow the trend of the Fed. The MPC will find it much harder (IMO) to justify a cut in coming months - lets hope Mr King having been reappointed for a further 5 years at least holds firm on rates.

Wednesday, February 20, 2008 10:54AM Report Comment
 

5. inbreda said...

says 9-0 on the Guardian

Maybe it's all just fiction?

Wednesday, February 20, 2008 11:53AM Report Comment
 

6. alan said...

@ Pelethar,

When discussing the problems of house prices dropping and causing negative equity....In a separate (BBC) interview, Kate Barker hinted that "ideally, interest rates should be cut further to head off this possibility". Details of the interview featured in an earlier hpc post, today.

If this is her view, I would expect another cut soon.

Wednesday, February 20, 2008 01:33PM Report Comment
 

7. hpwatcher said...

There is a clear determination by BoE to preserve the bubble in house prices - at all costs!

Sod inflation - effectively a set of stealth taxes - it's the house prices that make people feel rich.

What's worse, they are following America with cuts without having had the house price falls.

The lot of em' stink to high heaven.

Wednesday, February 20, 2008 01:42PM Report Comment
 

8. denzil said...

Blanchflower. I swear he's only in the MPC for his entertainment value.

Wednesday, February 20, 2008 09:35PM Report Comment
 

9. new user 2007 said...

None of indicators that would imply a slowdown have been conclusive and most have been volatile or contradictory....VIs are even saying fundamentals are stable! In fact, the one that stands out is that inflation is now out of control.

How does one then end up with the whole MPC wanting a cut...like I said, they are talking tough on inflation for consumers, while keeping their City and govet buddies happy by cutting. Of course, it all makes sense if one remembers that they are targetting house prices.

Thursday, February 21, 2008 12:56AM Report Comment
 

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