R K Posted May 5, 2011 Share Posted May 5, 2011 (edited) http://ftalphaville....r-very-closely/ With interest rates across the entire maturity spectrum remaining low and the monetary policy stance still accommodative, we will continue to monitor very closely all developments with respect to upside risks to price stability. Translation: We will skip June and raise rates in July. Or maybe August. and a wonderfully amusing chart highlighting the subtle nuances in Central Banker speak A bit disappointed not to see any Lerts. Wasn't Trichet remaining a Lert or was in Merv who was a Lert.......can't remember now......... Edited May 5, 2011 by Red Karma Quote Link to comment Share on other sites More sharing options...
Pent Up Posted May 5, 2011 Share Posted May 5, 2011 http://ftalphaville....r-very-closely/ and a wonderfully amusing chart highlighting the subtle nuances in Central Banker speak A bit disappointed not to see any Lerts. Wasn't Trichet remaining a Lert or was in Merv who was a Lert.......can't remember now......... That's chart is obviously opposite to the BOE one. Where close vigilance actually means "we will not raise rates no matter what inflation does... Ever" Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted May 5, 2011 Share Posted May 5, 2011 How accurate have the code words proved in the past? Quote Link to comment Share on other sites More sharing options...
scappers Posted May 5, 2011 Share Posted May 5, 2011 They say what they want us to hear, I always assume they'll do the opposite. When the BoE say they'll be vigilant on wage increases I presume they're hoping for some big rises. Quote Link to comment Share on other sites More sharing options...
Take Me Back To London! Posted May 5, 2011 Share Posted May 5, 2011 That's chart is obviously opposite to the BOE one. Where close vigilance actually means "we will not raise rates no matter what inflation does... Ever" BoE vigilance (pictorial translation). Quote Link to comment Share on other sites More sharing options...
Realistbear Posted May 5, 2011 Share Posted May 5, 2011 IMO a commodities bust and return to recession is saying no to IR hikes. Also, quite a few pending HPCs underway, especially in Iberian Penn and we are starting to stoke up a big one. If the big metals sell-off keeps going it may be the market saying no to MT and LT inflation. In any event. Merv cannot hike with a HPC about to get better (for buyers). Happy Dayz may be here again. Quote Link to comment Share on other sites More sharing options...
Guest spp Posted May 5, 2011 Share Posted May 5, 2011 "The economic consequences of high-level indebtedness now would become more severe if rates were to rise,β Mr King said. βIt is the main reason why interest rates are so low.β The plastic bullets are running out. Quote Link to comment Share on other sites More sharing options...
thecrashingisles Posted May 5, 2011 Share Posted May 5, 2011 I am reminded of the quote by Madonna about central bankers - "If they can't raise my interest then I have to let them be" Quote Link to comment Share on other sites More sharing options...
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