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thecrashingisles

Time To Raise The Rates?

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Has the balance of power swung enough to get an 'early' March raise?

The BBC business presenter said this morning that the BoE were expected to "shrug off" calls for a rate increase.

Don't you just love the phrase "shrug off", it encapsulates the cocky bull attitude.

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The BBC business presenter said this morning that the BoE were expected to "shrug off" calls for a rate increase.

Don't you just love the phrase "shrug off", it encapsulates the cocky bull attitude.

One day the boot will be on the other foot and the MPC will be "shrugging off" the bleating of homeowners seeing their hard-earned equity evapourate.

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There's more chance of me finding a reasonably priced property in London... no change, nailed on.

Actually, I'm voting for a CUT in IRs. Down to minus 2%. <_<

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There's more chance of me finding a reasonably priced property in London... no change, nailed on.

Actually, I'm voting for a CUT in IRs. Down to minus 2%. <_<

Second that, I want to see real rates (IR - inflation rate) go even more negative :)

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One day the boot will be on the other foot and the MPC will be "shrugging off" the bleating of homeowners seeing their hard-earned equity evapourate.

When that happens they will be 'stubbornly resisting' ;).

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Good article here on the effects of interest rates by the always enteraining Chris Dillow

http://www.investorschronicle.co.uk/Columnists/ChrisDillow/article/20110228/c580360c-4352-11e0-9950-00144f2af8e8/Dev-Alahan-Dr-Pepper--Bank-rate.jsp

He gives the impression that interest rates have a much smaller impact than the MSM (and HPC crowd) generally make out.

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Whilst the majority view is that interest-rates will be unchanged today I did spot a thoughtful sub-text to it earlier this week.

A Wild Card

The wild card is that MPC members must be aware that they are attracting criticism which is rising and that their policy is becoming an ever larger embarrassment. Looked at like that then just like a wild animal which is cornered their behaviour is hard to predict and so I will be awaiting noon on Thursday!

http://t.co/uZPNJ89

Just to be clear he feels that the main likelihood is that we will see unchanged interest-rates today but that there is also a small chance of a raise....

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The longer they leave it the larger the eventual correction has to be. Surely they know this?! :huh:

Unfortunately everyone in power just takes the view that only what happens during the few years they are running the show actually matters. Driving over a cliff is fine with them provided we don't hit the bottom before they've retired or moved on and someone else can be blamed.

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There's been some good economic news recently. Manufacturing today is up, yesterday trade was up (less down to be precise.)

There is a downside to raising the BR though. They'll raise it by +0.25% and it will have no effect thus showing the world how unpleasant the medicine is going to have to be. :o

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There is a downside to raising the BR though. They'll raise it by +0.25% and it will have no effect thus showing the world how unpleasant the medicine is going to have to be. :o

This echoes my own viewpoint exactly.

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They bottled it again - rates stay at 0.5%

quelle surprise.

I wonder what the votes ratio was this time, though...3-6? 4-5 and bums will be twitching...

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Thoughts?

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Not overly surprised, but as a tracker person am nevertheless happy.

I wonder what is going to happen once Sentance steps down imminently? Does anyone know anything about his replacement and what this general consensus is likely to be on where rates should be?

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Not overly surprised, but as a tracker person am nevertheless happy.

I wonder what is going to happen once Sentance steps down imminently? Does anyone know anything about his replacement and what this general consensus is likely to be on where rates should be?

Ben Broadbent, former GS so I guess you can listen to what he says he's going to do and bet the other way.

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Not overly surprised, but as a tracker person am nevertheless happy.

I wonder what is going to happen once Sentance steps down imminently? Does anyone know anything about his replacement and what this general consensus is likely to be on where rates should be?

Ben Broadbent.

http://www.hm-treasury.gov.uk/press_30_11.htm

I think the fact that the markets have 'priced in' rate rises mean it's a case of when, not if, the BoE raise.

The effects of them being 'vigilant' and doing nothing could have other damaging repercussions, of course...

http://www.thisismoney.co.uk/interest-rates

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Think I read somewhere this week (maybe on here) that the BOE MPC are paralised with fear. Quite an apt analogy I thought therefore no change.

Yeah, that was from Nadeem Walayat's article on Market Oracle.

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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% +
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