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DisQ

Boe Minutes Released: Talk Of More Qe & Rate Rise

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As our American cousins say dogs & pony show goes on,

all talk & no action (obviously I am referring to rate rise, not bloody QE)

waiting game, when they announce the "good news" that inflation is coming under control so we can print some more

wasn't there a massive drop from 3.2% to 3.1% !!!

hurray.... we are saved.

Bank of England pondered feeding economy more money after harsh Budget

The Bank of England considered pumping more money into the economy this month to counter harsh austerity measures outlined in the emergency Budget.

Minutes from the latest meeting of the monetary policy committee, published today, showed further quantitative easing was discussed amid fears the recovery could falter.

There was also talk of raising interest rates to bring inflation back under control as the MPC struggled to work out what was more of a risk, runaway prices or subdued economic growth and a bout of deflation.

Eventually the MPC voted by eight to one to leave rates on hold at 0.5% and maintain its money-printing programme at £200 billion. Bank hawk Andrew Sentance was the only dissenter, as he was in June and July, voting for a rate increase to 0.75%.

Andrew Goodwin, senior economic adviser to the Ernst & Young Item Club, said: Further QE is only likely to occur if there are clear signs that the recovery is relapsing.

Assuming that the Government tightens fiscal policy as planned, we expect rates to remain at 0.5% for several years to come.

The Bank said the 1.1% increase in national output in the second quarter was surprisingly robust and encouraging.

But it added that it was erratic and growth over the first half of the year was no better than average.

http://www.thisislondon.co.uk/standard-business/article-23868305-bank-of-england-gave-thought-to-extra-quantatitive-easing.do

Edited by DisQ

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Bank of England pondered feeding economy more money after harsh Budget

"Feeding the economy" :lol::lol::lol:

They must spend hours and hours to come up with up new headline words and phrases to avoid saying printing money and risking inflation and collapse of the economy.

Edited by billybong

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"Feeding the economy" :lol::lol::lol:

They must spend hours and hours to come up with up new headline words and phrases to avoid saying printing money and risking inflation and collapse of the economy.

I think the analogy they were aiming for was that money is fed into the system and then huge quantities of manure emerge from the other end.

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where are the feeds to the economy?

oh yeah, they go directly to Banks, do not Pass GO and Dont lend £200.

theyd like to, but people are paying down.

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"Feeding the economy" :lol::lol::lol:

They must spend hours and hours to come up with up new headline words and phrases to avoid saying printing money and risking inflation and collapse of the economy.

easiest job in the world though.

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I think the analogy they were aiming for was that money is fed into the system and then huge quantities of manure emerge from the other end.

Unfair! Nothing so useful as manure!

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These people need their heads looking at and/or their connections to the BIG banks scrutinized.

Primary school arithmetic should be sufficient for them to do their job and realise that Q.E. is a joke/theft.

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MPC now redundant...

IF Inflation > 10% THEN

BaseRate := BaseRate + 0.25%;

ELSIF Inflation < 2% THEN

QE := QE + £20bn;

ENDIF;

Revisions gratefully accepted as I reckon we can replace the whole of the MPC with a few lines of code...

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MPC now redundant...

IF Inflation > 10% THEN

BaseRate := BaseRate + 0.25%;

ELSIF Inflation < 2% THEN

QE := QE + £20bn;

ENDIF;

Revisions gratefully accepted as I reckon we can replace the whole of the MPC with a few lines of code...

While (Merv<=Puppet)

print "80llocks and Spin"

WEND

Edited by Bloo Loo

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They have to always sit on the fence. If they started saying 'inflation is a worry, rates will have to go up soon' then the banks and markets would pre empt the rise and effectively rates would rise without the BOE actually doing anything. It will always be a balanced argument until the day they raise.

I did like this part though 'it has been noted that rates can begin to rise and still be exceptionally low' (or words to that effect. So hopefully could see some small rises soon?

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There will definitely be more QE, I just don't think it will manifest as inflation.

Every £1 magiced up will just be used to pay off £1 of debt, leaving money supply unchanged.

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There will definitely be more QE, I just don't think it will manifest as inflation.

Every £1 magiced up will just be used to pay off £1 of debt, leaving money supply unchanged.

Which makes you wonder why dont they do the obvious thing and allow losers to default and find the proper market price for assets.

Oh yeah, the losers are their friends.

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There will definitely be more QE, I just don't think it will manifest as inflation.

Every £1 magiced up will just be used to pay off £1 of debt, leaving money supply unchanged.

Are you suggesting the Banking System is yet again...becoming Illiquid??

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Are you suggesting the Banking System is yet again...becoming Illiquid??

those died or expired in 2008, they are artifically kept alive on life support on our expense, no benefit to us.

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I am just astounded that the MPC is so f***ed up that it cannot see that near-ZIRP / QE CAN NOT Work.

Let the market price prevail.

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IIRC if they want to do more QE they have to ask Osborne first. What evidence is there that Osborne would agree?

He said in his first letter to merv as chancellor that he would support whatever the bank deemed necessary. Although thinking about it I think he was talking about controlling inflation not boosting the economy?

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"Feeding the economy" :lol::lol::lol:

They must spend hours and hours to come up with up new headline words and phrases to avoid saying printing money and risking inflation and collapse of the economy.

audrey2.jpg

FEED ME, MERVYN

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  • 238 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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