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Uk Growth

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The BOE as per the BBC report says that UK growth slowed "slightly" Do we all believe that it has slowed "Slightly" or the slowdown has been quite sharp and abrupt.

What are peoples views? If any :)

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The BOE as per the BBC report says that UK growth slowed "slightly" Do we all believe that it has slowed "Slightly" or the slowdown has been quite sharp and abrupt.

What are peoples views? If any  :)

They all have to use the most optomistic wording where ever possible to avoid it becomming a self forfilling prophecy.

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They all have to use the most optomistic wording where ever possible to avoid it becomming a self forfilling prophecy.

That's what I thought. I guess it just shows how much people believe in the news!!! It is obvious to me that it has slowed significantly, not slightly.

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The problem the bank has is it is looking at a situation in which growth is slowing but inflation is rising! That is the worste possible situation for a central bank. The solution to the inflation problem is to raise interest rates thus damping economic activity and cutting of inflation.

Unfortunately, if activty is already falling and inflation rising, all you end up downing is putting more people out of work! That was the situation back in the seventies and it was not pretty.

That is why the bank tries to talk up the economy on the one hand whilst controling the rate of growth with interest rates on the other. They need the economic forces to stay in opposition! If they start to pulling in same direction, down, they lose control. Recession or worse!

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But the trade deficit is down sharply . . .

http://news.bbc.co.uk/1/hi/business/4134116.stm

"The UK's trade gap narrowed sharply in June, igniting hopes for improved economic growth, official figures show. The difference between what the UK exported and imported was £4.27bn ($7.62bn), down from May's £4.98bn."

On the other hand, the article suggests this is due to fraudulent VAT scams.

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Lex in the FT (Live) has just commented on the BoE's statement and ends by saying

Broad money supply remains exceedingly loose, with annual growth of 11 per cent in the second quarter. Further easing would only risk inflating the housing bubble yet again.

But the UK economy has grown all too dependent on regular spending binges by households, as well as the government. Consumers’ indebtedness is already at worrying levels, while Treasury growth forecasts are looking less credible by the day. Achieving a sustainable soft-landing will take more than a little monetary tinkering.

Mmm! I take with a pinch of salt many of the comments from self styled economic experts on BBs (including myself :) ) but Lex in the FT is another matter!

I think I'll just keep depositing my assets, such as they are, into Germany and Japan! And maybe buy a few sovs.

Edited by ILikeBigBoobs

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Growth,what growth?

The majority of the population will not be prepared for more tax rises,higher council tax bills,higher energy bills.

Watch out for profit warnings from some of our "blue chip" companies by the end of next month.

I'm a bear and proud of it

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  • 335 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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