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I Told You So

Mpc Should Be Sacked

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I cannot see any logical explanation for todays decision, their remit is to control inflation and its on the way up.

Unless of course they've been given a sneak preview of next weeks Q2 Land Reg figures and its scared the sh*t out of them.

Other than that I give up, this country is going to be severely f**ked unless something is done soon.

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I cannot see any logical explanation for todays decision, their remit is to control inflation and its on the way up.

Unless of course they've been given a sneak preview of next weeks Q2 Land Reg figures and its scared the sh*t out of them.

Other than that I give up, this country is going to be severely f**ked unless something is done soon.

Is it not obvious that they don't see an inflationary threat big enough to outweigh the economic downturn. They try to control inflation 2 years out but declining spending and falling employment is happening now.

Oil and gas supply problems are both predicted to dissipate early next year. So where in the medium term do you see inflation coming from?

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Is it not obvious that they don't see an inflationary threat big enough to outweigh the economic downturn. They try to control inflation 2 years out but declining spending and falling employment is happening now.

Oil and gas supply problems are both predicted to dissipate early next year. So where in the medium term do you see inflation coming from?

Yeah right! The Chinese et al are all going to give up developing early next year are they and return to the fields? The BoE only sees what Gordon wants them to see.

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Yeah right! The Chinese et al are all going to give up developing early next year are they and return to the fields? The BoE only sees what Gordon wants them to see.

Precisely. One quarter of one percent won't make the slightest dent into anything. If anyone thinks Chinese imports are curtailed by "playing around" with tiny adjustments in monetary policy they must be in fantasy land.

Imports are rife because in many cases the UK has priced itself out of global markets. We all want cheap goods, 3 holidays a year, profit from HPI and 2 cars each and we want good salaries. It is nuts to suppose all that can result in anything other than losing any battle with other economies run on the back of much cheaper labour and increasing efficiency.

VP

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In fairness, the MPC have done a pretty good job so far.

100 decisions and not one naughty letter to write. 8 years ago I bet none of us thought that would happen!!

And surely the fact that inflation is now bang on 2% means their decision 2 years ago (to reduce rates to 3.5%) must have been right? :unsure:

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In fairness, the MPC have done a pretty good job so far.

100 decisions and not one naughty letter to write.  8 years ago I bet none of us thought that would happen!!

And surely the fact that inflation is now bang on 2% means their decision 2 years ago (to reduce rates to 3.5%) must have been right? :unsure:

Yes, there is a lot in that: Their target is 2% inflation and they are pretty much bang on. They made a small adjustment today, which won't affect very much, but perhaps helps manufacturing a little.

Nothing to worry about on any front I'd say.

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In terms of the general economy the MPC decision is not really a big deal.

For consumers the key rates are their mortgage rates and interest rates they recieve in their savings accounts. These rates are derived from the yield curve, not the short term repo rate that the MPC controls. The curve has been flat for at least a year and has recently been inverted - you can check it out here

http://www.yieldcurve.com/marketyieldcurve.asp

The point is that cut was well priced into the market. If you want a scapegoat for the IR cut look at the faltering economy rather than th MCP

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  • 301 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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