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Sterling Drops After New Inflation Data ...

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FT article

Interesting - in the past, inflationary signs usually trigger a bit of a rise because the markets reckon that the Central Bank of the affected country will raise interest rates to combat inflation. Not this time:

The pound quickly reversed course, however, as investors reasoned that it would have little impact on UK monetary policy, with the Bank of England likely to keep interest rates on hold at their current low level for the foreseeable future.

As George W. Bush said, "This sucker is going down". As the currency goes lower, we get more inflation and if the BoE doesn't raise rates then the currency goes lower still. Vicious circle. How long before the Bond Markets start factoring in an increased premium for their investment being inflated away?

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FT article

Interesting - in the past, inflationary signs usually trigger a bit of a rise because the markets reckon that the Central Bank of the affected country will raise interest rates to combat inflation. Not this time:

As George W. Bush said, "This sucker is going down". As the currency goes lower, we get more inflation and if the BoE doesn't raise rates then the currency goes lower still. Vicious circle. How long before the Bond Markets start factoring in an increased premium for their investment being inflated away?

The more the pound drops the more expensive imports are so more inflation increases.

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A "Honeymoon" period will be given, then "They" will bring on a collaspe.........then offer a "solution".

What is £ V $ now?

Mike

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Guest Noodle

A "Honeymoon" period will be given, then "They" will bring on a collaspe.........then offer a "solution".

What is £ V $ now?

Mike

$1.445

Long way to go.

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How long before the Bond Markets start factoring in an increased premium for their investment being inflated away?

That's the BIG question. But we know who is doing the buying.

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This is not great it signals a loss of credibility in monetary policy... and confidence is a fickle guest of credibility

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Flight to safety by the looks, most things getting slammed today again. Nothing to do with the inflation fiqures.

What do you mean most things are getting slammed? Relative to what? Relative to Sterling most things seem to be having a great day of it. As bloody usual.

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  • 259 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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