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Economic Growth Dampens Rate Cut Hopes

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"In fact, some suggested that the Bank would not have cut the interest rate if today's data had been available at the time. "

Anyone care to speculate on next month's vote? I'll start off the book: 5 to 4 for an increase!

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"In fact, some suggested that the Bank would not have cut the interest rate if today's data had been available at the time. "

Anyone care to speculate on next month's vote?  I'll start off the book: 5 to 4 for an increase!

Erm, you can get 44/1 for a quarter point increase next month on Betfair...

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Mr Butler said: "The real news was that inventories detracted a massive 0.7 per cent off quarterly growth. GDP growth excluding inventories actually expanded 1.2% over the past three months.

What does he mean by inventories?

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The new figures, which the statistics office attributed to a strengthening of the manufacturing sector, led it to restate its estimate of the annual growth of the British economy. National Statistics now believes that GDP is growing at a rate of 1.8 per cent a year, compared with its previous forecast of 1.7 per cent

LOL, THEY'VE DONE IT AGAIN, just like 2003 when the BOE disastrously lost the plot and dropped the rates on the basis the stats which were foudnout to be duff.

If there is one maker of the whoel debt edifice you really have to look at the BOE who have in the light of rampant speculation in the housing market and a historically unprecedented bubble in debt have time and again dropped rates to encourage consumer consumption.

Sack the lot of them.

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LOL, THEY'VE DONE IT AGAIN, just like 2003 when the BOE disastrously lost the plot and dropped the rates on the basis the stats which were foudnout to be duff.

Was dropping rates in 2003 really disastrous? Their aim was to hit an inflation target of 2.0% 2 years later. Wind forward to 2005 and you could say they were right on the money. :ph34r:

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Was dropping rates in 2003 really disastrous? Their aim was to hit an inflation target of 2.0% 2 years later. Wind forward to 2005 and you could say they were right on the money.

This myopic focus on a fudged inflation measure ignores the Bank's other statutory duty: financial stability. Inflation could be 2% rock-steady forever, but if we have rocketing debts and wild speculative bubbles in the asset markets, IMHO the Bank has failed in observing it's core purposes.

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This myopic focus on a fudged inflation measure ignores the Bank's other statutory duty: financial stability. Inflation could be 2% rock-steady forever, but if we have rocketing debts and wild speculative bubbles in the asset markets, IMHO the Bank has failed in observing it's core purposes.

I agree with you.

In fact I can see the BoE's decisions becoming a lot more difficult and contraversial over the next few years as it struggles to fulfil its two increasingly contradictory aims using its single blunt instrument.

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Guest Charlie The Tramp
This myopic focus on a fudged inflation measure ignores the Bank's other statutory duty: financial stability. Inflation could be 2% rock-steady forever, but if we have rocketing debts and wild speculative bubbles in the asset markets, IMHO the Bank has failed in observing it's core purposes.

Exactly, and that`s why they must IMHO control it. The VIs were screaming for cuts at the beginning of the year but the MPC still held as the debt bubble was still growing, the reason for the strange voting pattern at the last MPC meeting showing the top three and Tucker wanted to prevent false messages being given to the consumer, whereas the Bean gang wanted to lick Brown`s boots .

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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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