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Cornish Pasty

Irs Going Down..or Are They?

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Currencies Recent Indication Buy/Sell

EUR - Euro 1.448343 We Sell

HKD - Hong Kong Dollar 13.7473 We Sell

NZD - New Zealand Dollar 2.5720 We Sell

USD - U.S. Dollar 1.7697 We Sell

Market News

Traders are beginning to see the present time is a good opportunity to buy back some sterling as the market may have moved aggressively ahead of itself in pricing in UK rate cuts in the wake of London bombings in July and weak economic outlook. Sterling languished after the London attacks and on growing doubts about economic recovery, but recent buoyant retail sales data and improving consumer confidence has led some analysts to row back their expectations of a fast drop in UK rates. On Monday, UK gilt and short sterling interest rate futures fell sharply and the pound jumped to a two-week high versus the dollar as some investors rushed to cover their short-positions. Some economists said a widely-expected rate cut at this week's Bank of England Monetary Policy Committee's meeting may no longer a foregone conclusion. Further scaling back of policy easing by the BoE will certainly be pound supportive, but in the medium term, cable may still be biased to the downside. The fundamental picture still supports the dollar, and signs of continued strength in the U.S. economy could eat further into the pound’s yield advantage over the dollar than previously expected.

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Nice find.

I did wonder how close the the MPC meeting we would get before some back peddling was issued.

I expected it to be two camps.... Financial types getting back onto the fence and expecting a hold. And retail/property goons bleating for lower rates.

Seems to have been about right.

I would still like to see a small raise, but still think it'll be a hold.

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Nice find.

I did wonder how close the the MPC meeting we would get before some back peddling was issued.

I expected it to be two camps.... Financial types getting back onto the fence and expecting a hold. And retail/property goons bleating for lower rates.

Seems to have been about right.

I would still like to see a small raise, but still think it'll be a hold.

The 6.2/1 odds I got yesterday means I would very much like a hold.

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The 6.2/1 odds I got yesterday means I would very much like a hold.

Erm..Me too! The boys on betfair are usually right tho. With odds for -0.25% currently standing at 1.15 you've got to believe that's the way it's gonna go!

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so lets get this right: they raised them to stop hpi. Now its stopped they want to lower them? Smart.

Edited by George

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The bears hanging onto hope by a thread or two with this topic.

:lol:  :lol:

once again "Time To Roger The Rentboy" butts in with nothing intelligent to say. I would say you were the one living in hope of rate cuts, although surely this is ammunition for your tenants (if there really are any) to argue a REDUCTION in their rents.

Everyone else knows a rate cut will do diddly squat for the housing market B)

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Guest absolutezero
The bears hanging onto hope by a thread or two with this topic.

:lol:  :lol:

Not at all.

Low interest rates will not stop the crash.

Why would they?

One word: Japan.

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A drop in Interest rates will be seen as a starting flag for people to get off the fence and start spending on property.

They have made no secret of the fact that they see the housing market as a dam good revenue raiser and with a dampened economy the Chancellor needs every penny he can get.

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Guest absolutezero

Even if house prices go higher that's great. Bigger falls eventually.

The crash is now unavoidable.

Houses are too expensive and people are no longer willing/able to pay high prices.

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A drop in Interest rates will be seen as a starting flag for people to get off the fence and start spending on property.

They have made no secret of the fact that they see the housing market as a dam good revenue raiser and with a dampened economy the Chancellor needs every penny he can get.

which people exactly ? the ones who can't afford property at current levels? how is 0.25% less on a mortgage going to change minds? much better to wait a while and get 30% off the asking price ;)

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IR Cut .5% Is Required

However, I would like to see a cut! Why? Easy the narrower the gap between UK rates and US rates, the greater the downward pressure on the Pound. Once the pound falls we import inflation. Import inflation then rates go up. This has been a big boom but remeber the bigger the boom the bigger the bust. Thats what free market economics is all about.

Oil is the key. Oil prices are up massively over the last two years, but petrol prices over here have not risen anywhere like as much. True we pay a lot of tax up even so petrol prices should have gone up. They have not because the pound has been strong over the same period, all but cancelling out the rise in oil prices.

If the pound falls now we will be exposed to the full price of oil and it could happen quite quickly. I have noticed that petrol prices are at last starting to rise, 5p in the last three weeks or so.

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  • 341 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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