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I Told You So

Rates Peaked And Now Troughed

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Gilts dip as UK rate-cut hopes fade

By Joanna Chung in London

Published: August 10 2005 12:05 | Last updated: August 10 2005 12:05

BondsShort-dated gilts fell as hopes of another UK interest rate cut this year faded on the back of a relatively hawkish quarterly inflation report from the Bank of England released on Wednesday.

http://news.ft.com/cms/s/4c9becda-0989-11d...000e2511c8.html

Amazing, it appears the rate cycle peaked at 4.75% and has now troughed at 4.5% and we are now into the next upward cycle.

Economists, banks the BoE they really don't know what is happening.

To me its simple rates were at a 50 year low and US rates are now rising as is inflation theres only one way for them to go now and thats up. :D

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Economists, banks the BoE they really don't know what is happening.

To me its simple..........

Might I humbly suggest that it's probably not a simple 1 dimensional solution.

Perhaps it is you who are simple?

Edited by Ignorant Steve

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Personally, I'm amazed at how Mervyn King etc seem to have pretty much said "yeah, I hope you enjoyed the down cycle, but it is over now".

One interest rate cut?

TTRTR must have cried himself to sleep last night.

A whole year bleating about how we'll all be sorry when rates start to go down... everything will great again when rates start to go down... then the MPC says they don't think they'll bother with any more cuts.

I don't claim to know whether further cuts will be necessary (if the economy keeps deteriorating rapidly, for example) but it looks like a massive damp squib.

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It's like a loony bin really - stability? What a laugh! One day they're definitely going down, next they're definitely going up.

If they are into stability why do they review the rate every month. Surely every 3 months would do?

Taking a rational look at life today - and the all pervasive media - I would say we are collectively suffering from mass hysteria.

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Might I humbly suggest that it's probably not a simple 1 dimensional solution.

Perhaps it is you who are simple?

You are Steve one of these people who gets most offended when someone resorts to abuse when its directed at yourself but seem to ignore the rule when the balls in your court.

So perhaps you should enlighten the thread with a little more detail regarding the "multi dimensional solution"?

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If they are into stability why do they review the rate every month. Surely every 3 months would do?

It was not that long ago that rates used to move in response to rather faster market forces. We used to see rates yo-yoing on almost a weekly basis!

You will know that instability has returned when the regular MPC meeting are replace by "special" meeting, God for bid they ever call them "emergancy" meetings, because then we'll know we are really in trouble!! :(

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Interest rate expectations have been up and down like the proverbial whore's drawers.

Early in the year expectation were than IR would go up, to 5% by year end if I remember correctly.

This u-turned and the expectation came that there would be a cut, and then the expectation became several cuts.

Now, another u turn and the expectation is that, after this single cut to 4.5%, there will be no more cuts.

Is this the sign of a healthy stable and prosperous economy. Or is this an economy caught between the rock of inflation and hard place of high consumer debts, I wonder?

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Taking a rational look at life today - and the all pervasive media - I would say we are collectively suffering from mass hysteria.

With a few diehards, as evidenced here, heroically resisting!

Or, will it be as the finale of "Invasion Of The Bodysnatchers", with even our hero taken over.

:(

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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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