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gruffydd

Faisal Islam - Strong Chance Of Interest Rate Rise Next Month

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http://blogs.channel4.com/faisal-islam-on-economics/rate-rises-and-who-controls-britains-currency-policy/13802

"Spencer Dale’s conversion is key. He is a bank insider, its chief economist, responsible for putting together the inflation report. He is the first insider since July 2007 to vote for a rise in interest rates. As we now have 3 members voting for a rise, there’s a strong chance of a rise next month. "

Edited by gruffydd

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Interesting final point he makes...

"Yet, listen back to George Osborne‘s interview with Krishnan on Saturday. Hear his praise of the weak exchange rate, and it’s role in boosting manufacturing and helping to “rebalance Britain”. The Governor says the same thing. A weak pound is funadamental to the economic strategy of this Coalition. But is it consistent with the inflation target of 2 per cent? These are considerations that we thought taht Britiosh economic policy had left behind.

Now that Britain’s is importing inflation rather than deflationary pressures from the rise of China et al, it matters again."

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It is interesting to see more converts as the crisis fades and people on the MPC start to fear for their jobs.

This is the cleft stick of printing money.

Although perhaps rather than raising IRs they should try Quantitative Tightening?

Or was QE for a different reason :lol:

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The bankrupt of england are now irrelevent, the damage has been done (again).

They have set a bonfire under inflation (together with other banks) because basically they are just a spineless offshoot of the fed. Everyhting they have said about inflation targeting has been proven to be a total lie.

Real inflation will out them.

Edited by OnlyMe

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Well according to betfair only a 1 in 6 chance, so Faisal Islam can make some £££££££££

I'd give it 3-1 maybe evens. So that sounds like a good bet to me.

Edited by Pent Up

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Too little, too late.

They lost control of the situation in 2003 when they choose to create a consumer boom to stop a recession. The BoE became economic numpties and it was just a matter of time before the whole thing blew up.

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http://blogs.channel...cy-policy/13802

"Spencer Dale's conversion is key. He is a bank insider, its chief economist, responsible for putting together the inflation report. He is the first insider since July 2007 to vote for a rise in interest rates. As we now have 3 members voting for a rise, there's a strong chance of a rise next month. "

I predict a 50% increase in vigilance.

This will be muscular vigilance, completely different to that wishy washy liberal vigilance we've had for the last 3 years.

Merv might even wear an angry tie for the occassion.

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It is interesting to see more converts as the crisis fades and people on the MPC start to fear for their jobs.

This is the cleft stick of printing money.

Although perhaps rather than raising IRs they should try Quantitative Tightening?

Or was QE for a different reason :lol:

The problem they have is that the policies of money printing, ZIRP and backstopping the entire financial system with taxpayer cash/debt have been so 'successful' that people are no longer in fear of their livelihoods and can't be relied upon to meekly swallow a rapidly rising cost of living.

There's a huge chunk of the public holding considerable debt. They will clamour for low rates and punish those who raise them. Worse, the general public are so ignorant that they also can't see the link between inflation and interest rates - they have been conditioned by the media to think low base rates are the be-all and end-all of financial policy. The general demand will be for higher wages, not inflation control. Just as in the Weimar inflation.

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  • 311 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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