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Interest Rates On Hold As George Osborne Promises Growth

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http://uk.finance.yahoo.com/news/Interest-rates-hold-George-tele-1052997485.html?x=0

Interest rates on hold as George Osborne promises growth
Amy Wilson, 19:15, Saturday 5 March 2011
The Bank of England is expected to hold interest rates at the record low of 0.5pc this week, as concerns about the strength of economic recovery in the UK take precedence over the need to tackle inflation.
At the same time, the Government is pushing the message that the forthcoming Budget will be designed to kick start the economy.
The 2011 Budget will "confront the forces of stagnation that stand in the way of success; bring down the barriers that stop Britain getting back on its feet," Chancellor George Osborne told a Conservative Party conference in Cardiff yesterday.
"The Budget is going to be unashamedly pro-growth, pro- enterprise and pro-aspiration," Mr Osborne said. "It will look at the planning delays, the new regulations, the bureaucracy and the costs that hold business back and stop jobs being created."

The currency markets and stocks markets have priced in an IR hike so what are they going to do now given this contrarian market? Load up on Sterling or trigger a non-contrarian Black Monday for the Pound?

If the economy is really so weak that a small inflation-justified hike cannot be implemented perhaps UK Plc is overdue a correction?

Have Gordon's pigeons only just landed back in the roost?

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The 2011 Budget will "confront the forces of stagnation that stand in the way of success; bring down the barriers that stop Britain getting back on its feet," Chancellor George Osborne told a Conservative Party conference in Cardiff yesterday.

"The Budget is going to be unashamedly pro-growth, pro- enterprise and pro-aspiration," Mr Osborne said. "It will look at the planning delays, the new regulations, the bureaucracy and the costs that hold business back and stop jobs being created."

Yeah yeah yeah for goodness sake change the record, promises promises. Decades of broken promises. The same old dodgy stuff in advance of every budget.

Run along now and do some more printing.

Edited by billybong

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http://www.telegraph.co.uk/finance/economics/8363703/Interest-rates-on-hold-as-George-Osborne-promises-growth.html

Interest rates on hold as George Osborne promises growth
The Bank of England is expected to hold interest rates at the record low of 0.5pc this week, as concerns about the strength of economic recovery in the UK take precedence over the need to tackle inflation.

Sunday papers confirming this is where IR are likely to go, or not go. It will be interesting to see if, given the contrarian market, this will be a booster for £ on Monday as the market had apparently been pricing in a hike this Spring.

I have never seen a hike coming and agree with Merv. In fact Merv is starting to take on a saintly aura IMO. Anyone who insults the banksters is a good blooke IMO.

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I interpret Osborne's comments to mean that there will be:

  • tax cuts for businesses and the rich
  • tax rises for the rest of us to balance things out
  • fuel duty cut as a distraction for the sheeple

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I interpret Osborne's comments to mean that there will be:

  • tax cuts for businesses and the rich
  • tax rises for the rest of us to balance things out
  • fuel duty cut as a distraction for the sheeple

He mentioned the dreaded word "aspiration". The Tories always talk about owning a house/houses as an "aspiration" so you have missed one out.

Something for BTLers and FTBers funded by everyone else.

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A Dash For Growth on the middle of an oil crisis and financial turmoil. Check out what happened last time this was tried under Tony Barber, the Chancellor in Ted Heaths government on the early 1970s. It was this policy that led to the start of the runaway inflation of that era (and I mean 20% plus not what we have now). This looks like a set the controls to the heart of the sun moment. I am now hoping that the world economy slumps back into recession first before this reckless idiot makes it any worse. Can't these numbskulls realise

that recessions need to be allowed to happen in a business cycle and that growth needs tp be organic not forced. This looks like an attempt to blow another debt fuelled bubble.

Edited by stormymonday_2011

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Pretty sure the government have identified HPI as the enemy?

Remember what we started with in the UK: an economy built on the worst deficit, the most leveraged banks, the most indebted households, the biggest housing boom and unsustainable levels of public spending and immigration.

(http://www.politics.co.uk/features/economy-and-finance/david-cameron-s-davos-speech-in-full-$21386920.htm)

Funny how this seems to have been missed out of most of the UK coverage of this speech.

(http://www.guardian.co.uk/politics/blog/2011/jan/28/politics-live-blog)

Seems pretty clear the problem has been identified. The solution ventured is a slow reduction in prices / debt , rather than a massive crash. As IR rise prices will fall, faster, simple.

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The truth is the price of oil will break this government just like the last one. It is cheap energy not cheap money that is the true source of growth.Those 12 virtual energy slaves each and everyone of us has working full time 24 hours a day have just put in for a massive pay rise.

Edited by stormymonday_2011

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The truth is the price of oil will break this government just like the last one. It is cheap energy not cheap money that is the true source of growth.Those 12 virtual energy slaves each and everyone of us has working full time 24 hours a day have just put in for a massive pay rise.

oh yes, energy, energy and more energy. oh and cheap labour.

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  • 312 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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