thecrashingisles Posted March 10, 2011 Share Posted March 10, 2011 (edited) Has the balance of power swung enough to get an 'early' March raise? Edited March 10, 2011 by thecrashingisles Quote Link to comment Share on other sites More sharing options...
Bruce Banner Posted March 10, 2011 Share Posted March 10, 2011 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. Quote Link to comment Share on other sites More sharing options...
thecrashingisles Posted March 10, 2011 Author Share Posted March 10, 2011 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. Quote Link to comment Share on other sites More sharing options...
red Posted March 10, 2011 Share Posted March 10, 2011 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%. Quote Link to comment Share on other sites More sharing options...
General Congreve Posted March 10, 2011 Share Posted March 10, 2011 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 Quote Link to comment Share on other sites More sharing options...
Bruce Banner Posted March 10, 2011 Share Posted March 10, 2011 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' . Quote Link to comment Share on other sites More sharing options...
pablopatito Posted March 10, 2011 Share Posted March 10, 2011 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. Quote Link to comment Share on other sites More sharing options...
VickieJo Posted March 10, 2011 Share Posted March 10, 2011 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 CardThe 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.... Quote Link to comment Share on other sites More sharing options...
The Knimbies who say No Posted March 10, 2011 Share Posted March 10, 2011 It would be a 'surprise' if everyone thought a rise was on. That said, I expect them to continuie to do SFA. Quote Link to comment Share on other sites More sharing options...
Nationalist Posted March 10, 2011 Share Posted March 10, 2011 The longer they leave it the larger the eventual correction has to be. Surely they know this?! 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. Quote Link to comment Share on other sites More sharing options...
bear call spread Posted March 10, 2011 Share Posted March 10, 2011 Hopefully no change (my BOE 1% tracker has helped with overpayments last couple of years) But something makes me think there might be a surprise today. Quote Link to comment Share on other sites More sharing options...
Nationalist Posted March 10, 2011 Share Posted March 10, 2011 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. Quote Link to comment Share on other sites More sharing options...
chrismar Posted March 10, 2011 Share Posted March 10, 2011 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. This echoes my own viewpoint exactly. Quote Link to comment Share on other sites More sharing options...
thecrashingisles Posted March 10, 2011 Author Share Posted March 10, 2011 They bottled it again - rates stay at 0.5% Quote Link to comment Share on other sites More sharing options...
The Knimbies who say No Posted March 10, 2011 Share Posted March 10, 2011 oh dear. Quote Link to comment Share on other sites More sharing options...
red Posted March 10, 2011 Share Posted March 10, 2011 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... Quote Link to comment Share on other sites More sharing options...
SEW247 Posted March 10, 2011 Share Posted March 10, 2011 Thoughts? Quote Link to comment Share on other sites More sharing options...
SEW247 Posted March 10, 2011 Share Posted March 10, 2011 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? Quote Link to comment Share on other sites More sharing options...
The Knimbies who say No Posted March 10, 2011 Share Posted March 10, 2011 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. Quote Link to comment Share on other sites More sharing options...
red Posted March 10, 2011 Share Posted March 10, 2011 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 Quote Link to comment Share on other sites More sharing options...
singlemalt Posted March 10, 2011 Share Posted March 10, 2011 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. Quote Link to comment Share on other sites More sharing options...
Kazuya Posted March 10, 2011 Share Posted March 10, 2011 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. Quote Link to comment Share on other sites More sharing options...
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