Tuesday, Jun 17, 2008
Interest rate rises today?
Guardian: Inflation fears force Bank into a corner
The article subtitle is 'City expects price pressures to trigger rise in interest rates instead of cuts.' Could this be the start of a trend or will the BoE hold rates again?
Posted by quiet guy @ 08:27 AM (429 views) Add Comment
5 Comments
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1. pelethar said...
No matter how bad the inflation figures are I don't see them increasing rates this year. The political pressure will just be too intense.
2. Sold My Soul To The Never Never Never said...
If the B of E won't raise interest rates due to pressure from the Govt - then at least the Banks and Building Societies are. My SVR is cheaper than some of these fixes that are coming on board now!
3. greytornado said...
I think Brown is effectively finished - he has no real policy and is being lead by events. Darling apparently is quite a nice chap by all accounts, but it is widely known that he hasn't got the faintest idea of what to do, he is completely out of his depth. Add to this that there is apparently no love lost between Merv and Gordo, so Merv will do the only thing the BoE can do and that is to put up rates. How many times did Gordo tell us that his policies had ended Boom & Bust for ever?
4. Stevie Dee said...
@Silvertyphoon (greytornado, just think it sounds better).
The ECB will raise interest rates and the BoE will follow. Yes, Gordon Brown, said no more boom & bust, but in truth everyone is liable. As a younger member of society it is actually a positive situation, because it will actually break the strangle hold the "baby boomers" had on the UK economy. I personally believe, that this particular generation are not only tapped, but have had it extremely easy in comparison to subsequent generations. You started with rationing, and you will end with rationing.
5. quiet guy said...
@Stevie Dee
"As a younger member of society it is actually a positive situation, because it will actually break the strangle hold the "baby boomers" had on the UK economy."
Agreed. What I want to know is how the people who been used to easy money from the housing boom react when the correction really gets going. I expect calls for assistance using taxpayers cash. It could get a bit ugly.