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Inflation News Crushes Hopes

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Guest struthitsruth

my money's on a +0.25 rise.

:o

But it was for the August meeting. . . . can't believe they didn't raise rates then !

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my money's on a +0.25 rise. 

But it was for the August meeting. . . . can't believe they didn't raise rates then !

As a matter of interest what are the markets saying?

So I don't need to keep asking silly questions. Is there an easy link so that I can get with one click "the money markets think that interest rates will be x% in y months".

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As a matter of interest what are the markets saying?

So I don't need to keep asking silly questions.  Is there an easy link so that I can get with one click "the money markets think that interest rates will be x% in y months".

Does anyone really know?

But this is a very interesting read from an FT dude....

An Economists View

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As a matter of interest what are the markets saying?

So I don't need to keep asking silly questions.  Is there an easy link so that I can get with one click "the money markets think that interest rates will be x% in y months".

http://www.futuresource.com/quotes/quotes.jsp?s=LSS

Do 100 minus the number to get the implied rate.

Hope that helps.

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Looks like interest rates unchanged for 5 years?

I think its got to the stage that because IRs are so low, and the banks are starting to suffer as a result of dodgy borrowing, any lowering of IRs wont make a difference; they will simply take it as profit (unless its a tracker of course). However, any increases will immediately be priced in, possibly pre-emtively.

One thing that concerns me is the BOE know inflation s rising due to fuel costs, so rising rates will not make the slightest difference in overall inflation, unless their aim is to stifle other inflation in order to offset the effect of higher energy prices. Either way, any move in IRs will indicate something is seriously up; with gordy looking for someone to blame, I am not expecting IRs to move now for possibly up to a year. Merv has had his standoff with the treasury, I reckon he is currently thinking, sod them, lets do our own thing and be fully indepedent as we are supposed to be.

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They're likely to sit on 4.5% for a while.

Having just dropped rates 0.25% I can't see them instantly reversing that decision.

If inflation continues to rise we could see a 0.25% increase in October?

I think the range remains 4.5% - 5.5% for the next 12 months.

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They're likely to sit on 4.5% for a while.

Having just dropped rates 0.25% I can't see them instantly reversing that decision.

If inflation continues to rise we could see a 0.25% increase in October?

I think the range remains 4.5% - 5.5% for the next 12 months.

Shortley after we reduced rates the US increased thiers, this caused the pound to weaken against the Dollar, that put upward pressure on fuel prices. They are trapped now, whats your choice now, higher fuel costs or higher mortgages. Thats all it amounts to now.

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Shortley after we reduced rates the US increased thiers, this caused the pound to weaken against the Dollar, that put upward pressure on fuel prices.  They are trapped now, whats your choice now, higher fuel costs or higher mortgages.  Thats all it amounts to now.

The US are widely expected to continue raising rates at each Fed meeting, except one, from now until the end of the year.

That will take them to 4.25%.

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Guest pioneer31

From the article:

"I’m afraid that the high price of housing in the UK is largely not a bubble but the reflection of a supply demand imbalance"

Oh dear, not you as well! :rolleyes:

Edited by pioneer31

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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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