Jump to content
House Price Crash Forum
RDW

Rates Must Be Set To Control Inflation - Cameron

Recommended Posts

http://uk.finance.yahoo.com/news/rates-must-be-set-to-control-inflation-cameron-reuters_molt-e52c4d2a260d.html?x=0

LONDON (Reuters) - The rise in inflation has been worrying and the independent Bank of England will need to set interest rates to control it, Prime Minister David Cameron said on Friday.

He was speaking in a television interview before giving what was billed as a major speech in which he will set out his plans for reinvigorating an economy he believes has become over-indebted, unstable and too dependent on the public sector for job creation.

Inflation hit 3.7 percent in April, nearly double the central bank's 2 percent target.

"Policy set independently by the Bank of England, that is the right way to do things," Cameron told GMTV.

"We have seen a slightly worrying increase in inflation in recent months so interest rates will be set to control inflation."

Share this post


Link to post
Share on other sites

"We have seen a slightly worrying increase in inflation in recent months so interest rates will be set to control inflation."[/i]

So they are going to go up then?!

Are the nasty Tories going to be responsible for another houseprice crash then - it would never of happened under Labour you know.

:P

Share this post


Link to post
Share on other sites

http://uk.finance.yahoo.com/news/rates-must-be-set-to-control-inflation-cameron-reuters_molt-e52c4d2a260d.html?x=0

LONDON (Reuters) - The rise in inflation has been worrying and the independent Bank of England will need to set interest rates to control it, Prime Minister David Cameron said on Friday.

He was speaking in a television interview before giving what was billed as a major speech in which he will set out his plans for reinvigorating an economy he believes has become over-indebted, unstable and too dependent on the public sector for job creation.

Inflation hit 3.7 percent in April, nearly double the central bank's 2 percent target.

"Policy set independently by the Bank of England, that is the right way to do things," Cameron told GMTV.

"We have seen a slightly worrying increase in inflation in recent months so interest rates will be set to control inflation."

Shame the BOE is 'independent' then if DC wants rates up?

Share this post


Link to post
Share on other sites

http://uk.finance.yahoo.com/news/rates-must-be-set-to-control-inflation-cameron-reuters_molt-e52c4d2a260d.html?x=0

LONDON (Reuters) - The rise in inflation has been worrying and the independent Bank of England will need to set interest rates to control it, Prime Minister David Cameron said on Friday.

He was speaking in a television interview before giving what was billed as a major speech in which he will set out his plans for reinvigorating an economy he believes has become over-indebted, unstable and too dependent on the public sector for job creation.

Inflation hit 3.7 percent in April, nearly double the central bank's 2 percent target.

"Policy set independently by the Bank of England, that is the right way to do things," Cameron told GMTV.

"We have seen a slightly worrying increase in inflation in recent months so interest rates will be set to control inflation."

Fanastic news. Now it's over to Merv- will he won't he?

Share this post


Link to post
Share on other sites

I watched the interview on GMTV - he said he wants to be able to keep interest rates "lower for longer"

By that he means when inflation takes hold then rates need to go higher than they would have had to before.

Share this post


Link to post
Share on other sites

By that he means when inflation takes hold then rates need to go higher than they would have had to before.

I hope so. it's just that the campaign leaflets from my conservative MP also promised "to keep rates and therefore your mortgages lower for longer"

Share this post


Link to post
Share on other sites

Gordons low interest rate policy.

Ah, right. So does the MPC set rates or did Gordon do it?

Gordon; "The BoE independently sets rates to keep inflation at 2% +- 1%, managing inflation is important"

Dave; "The BoE independently sets rates to keep inflation at 2% +- 1%, managing inflation is important"

HPC; "Hooray, it's a brave new world!!!!"

Share this post


Link to post
Share on other sites

saydodosay.

Exactly.

This is a typical sign that they won't be controlling inflation but are instead hoping that by saying they will it might convince the markets not to react to the inflation - thus mitigating the consequences without them having to actually do something.

Share this post


Link to post
Share on other sites

I watched the interview on GMTV - he said he wants to be able to keep interest rates "lower for longer"

Back to dosay, he hasn’t specifically stated that he wants to keep rates at 0.5% or that he will do so (forget Merv, he does as he’s told).

5% is low.

Share this post


Link to post
Share on other sites

I hope so. it's just that the campaign leaflets from my conservative MP also promised "to keep rates and therefore your mortgages lower for longer"

Anything below the historical 5% is lower, isnt it?

I think the point is that interest rate fluctuation below 5% to control inflation, is keeping interest rates low.

The BoE just sitting there at 0.5%, watching inflation soar away cannot be expected or assumed.

Edited by Agent Provocateur

Share this post


Link to post
Share on other sites

Anything below the historical 5% is lower, isnt it?

I think the point is that interest rate fluctuation below 5% to control inflation, is keeping interest rates low.

The BoE just sitting there at 0.5%, watching inflation soar away cannot be expected or assumed.

Did he say that they are going to raise interest rates?

No.

Then we can safely say they aren't.

Share this post


Link to post
Share on other sites

Shame the BOE is 'independent' then if DC wants rates up?

A gentle reminder to Merv that his job (should he wish to keep it) is to control inflation and not to pursue Zanu Labour electioneering targets.

Edit: or to put it another way - DC and Ozzy aren't too keen on seeing their significant personal fortunes inflated away.

Edited by Goat

Share this post


Link to post
Share on other sites

http://uk.finance.yahoo.com/news/rates-must-be-set-to-control-inflation-cameron-reuters_molt-e52c4d2a260d.html?x=0

LONDON (Reuters) - The rise in inflation has been worrying and the independent Bank of England will need to set interest rates to control it, Prime Minister David Cameron said on Friday.

He was speaking in a television interview before giving what was billed as a major speech in which he will set out his plans for reinvigorating an economy he believes has become over-indebted, unstable and too dependent on the public sector for job creation.

Inflation hit 3.7 percent in April, nearly double the central bank's 2 percent target.

"Policy set independently by the Bank of England, that is the right way to do things," Cameron told GMTV.

"We have seen a slightly worrying increase in inflation in recent months so interest rates will be set to control inflation."

Thats just DC playing to the masses... he well knows that rates are only a very small cog in this, especially as they have become largely de-coupled from real world borrowing rates..... he well knows that cutting the deficit will improve credibility and could stiffen up the pound leading to reduced inflation, he well knows rises in VAT will negatively impact the number but won't mean much in real terms, he knows that increased taxes and reductions in govt expenditure will reduce demand and may well have a lowering impact on inflation, and he knows all these things will happen far more quickly than any drip drip .25% rise, wait three months, 0.25% rise, wait three months etc etc change to BOE rates.

Personally I don't think BOE rates are going anyway far fast..... we might see 1% by the end of the year/ middle next but thats about it in my book. And I wouldn't even bet against them exactly where they are in 18 months time.

Share this post


Link to post
Share on other sites
and the independent Bank of England will need to set interest rates to control it, Prime Minister David Cameron said on Friday

I know the logical absurdity of the above statement has already been pointed out, but I thought it bore repeating.

Share this post


Link to post
Share on other sites

The economic and political pressures on rates are increasing. Might be a short time before we get the first quarter percent, but BoE said inflation would drop and so far it hasn't. If it stays where it is or goes up then we'll be getting IR rises. When they come they are likely to come faster than one might expect

Many on this site have said that HPC won't happen until IR go up. Well, they're going up sometime in the next year - I would expect 2 or 3 increases by end of year to 1 or 1.25%. Keep an eye on the minutes of the monthly meetings to see how close the decision is. With OECD and DC broaching the subject, it will be high on the agenda next month.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 150 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%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.