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ril

Bank Of England Reduces Interest Rates By 0.25 Per

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what we know / expect now

BoE isn't independent

we now have 2 months of EAs and vendors tying to sell at the same prices and not understanding why an IR cut hasn't caused people to rush out and buy

i will be able to buy even cheaper in a years time than i thought i would

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Well thats that then, MPC, independent.

Merv the Serv or the Swerv, thought he had more b*llocks

Fat Brown has his way, we are in the sh*t, that is the signal this gives out

The pound will be drawn and slaughtered

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Woohoo! That means I can now afford a hugely expensive house based on that quarter percent cut! :rolleyes: (BTW I was being ironic - though I'm sure the media would believe it)

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As before, stand firm brothers.

Interest rates going down a quarter point will be seen as an amusing trifle by anyone with an ounce of vision. With the US publicly committed to a policy of raising rates there, I wouldn't be surprised if we're back up to 4.75% at least by Christmas.

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The pound is going up right now... bizarre.

Maybe it's lucky that I waited until after their decision to get out of sterling and didn't do it last week :).

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some dude on radio-5

"we need to make sure we don't see house sales stall.....which would be catastrophic.... but it won't happen now.... " aye right!

laadeelaadeelaa...

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Now what.

I have to admit things are not going the way I had predicted when I STR. I see people are worse off than they were. Prices have dropped a little. But not enough to justify my position.

I don't think this IR cute will make any difference.

Just this morning I got a letter from the valuations office with a questionaire to value my home. This is all to come.

I think things are still 18 months away.

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Guest absolutezero

The rate cut makes very little difference (if any) to the property market.

A cut of £20 a month has done nothing to make houses more affordable for buyers.

One of two things happens now (and I win either way).

1. Houses still don't sell in the same volumes as a year or so ago. The public starts to think something is seriously wrong. House prices drop (supply and demand).

2. Houses sell in vast numbers. Prices go up. Makes them even more unaffordable. Crash happens anyway.

Sentiment among buyers has changed. People are now beginning to see that houses are not affordable.

The next few months will prove very interesting indeed.

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If an IR cut is supposed to be such a good thing and will help the economy, why has the FTSE dropped since the announcment?

(In laymans terms please?)

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A .25% cut only reduces a repayment mortgage of £100,000 by around £14 a month, which is nothing. Houses are still too expensive.

It'll be interesting to see what happens if the housing market does not re-start and interest rates continue to rise in the US.

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Guest Riser
Pound up 2% in the past few days, couple more cuts priced in, think i made a good decision to buy a couple of months ago.

The increase in the pound is more to do with a falong dollar, gold is up against both the pound and the dollar. Good luck with your purchase, your going to need it.

Hees a messy chart I did last month showing annual change in IR and Inflation with HPI. currently looking at how IR and Inflation can be converted to % of long term average.

Edited by Riser

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If an IR cut is supposed to be such a good thing and will help the economy, why has the FTSE dropped since the announcment?

Because the shareholders realise that a 0.25% cut will do bugger all for the economy? Better to get out now during the media jubilation than lose money when it wears off.

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Oh hum!

Markets found it about as interesting as we did. Stock market wnet up 4 points in 2 minutes, Pound lost against the dollar for about 2 minutes.

Then BOTH markets decided 0.25% made not a jot of difference and normal service was resumed.

A bit miffed that Bush is making an even bigger mess of the US than our lot are because the pound is recovering value. <_<

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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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