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papag

Sir Merve And His Merry Men Still Failing

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It does sort of make sense.

Low interest = low mortgages, low cost of borrowing, low opportunity cost = low rents, more money to spend in the retail sector.

Raising rates would harm almost everything, but it would drop house prices.

I think it is very clear that the main goal of the BoE is to inflate away as much debt as possible and to devalue the pound in line with every other major currency around the world. Everyone is devaluing and inflating at the same time, thus deleting debt with the least pain to the indebted and most pain to the creditors.

2yr: 3.5%, 3yr: 4%, 5yr: 4.6%. 2 year tracker: 2.5%

So - would you pick a fixed or a tracker mortgage? Fix for how long?

You can't inflate debt away without wage inflation.

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(CPI) annual rate of inflation held steady in May at 4.5%.

The Retail Prices Index (RPI) measure of inflation - which includes mortgage interest payments - was also unchanged at 5.2%

How can we reward Merve further for failing again and again at his job with no prospect of him ever being able to arrest the inflation which his the remit

http://www.bbc.co.uk/news/business-13759286

No worries its only food that is still going up Ferry fares are coming down!

http://www.ft.com/cms/s/0/f6c913d8-9671-11e0-afc5-00144feab49a.html#ixzz1PFlDMRcM

Consumer price inflation remains at 4.5%
By Daniel Pimlott, Economics Editor
Published: June 14 2011 11:41 | Last updated: June 14 2011 11:41
Inflation remained at 4.5 per cent in May as food prices rose sharply but were offset by
a large fall in the price of air fares and ferry tickets.
.

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(CPI) annual rate of inflation held steady in May at 4.5%.

The Retail Prices Index (RPI) measure of inflation - which includes mortgage interest payments - was also unchanged at 5.2%

How can we reward Merve further for failing again and again at his job with no prospect of him ever being able to arrest the inflation which his the remit

http://www.bbc.co.uk/news/business-13759286

It is no great conundrum when you consider that his job is not in reality what you think it is. the remit is for public consumption only.

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So put yourself in his shoes and ask what he should do?

Raise interest rates to stave off inflation

I think moving it up by just 0.25% would be useful, it tells people not to be complacent about ZIRP, many people now see it as the new gravy train.. why rent when you can buy, why save when you can borrow cheaper. etc.

Raising rates would harm almost everything, but it would drop house prices.

Tell that to savers who are taking it up the wrong'un to the tune of £36 BILLION pounds due to crap rates.

Edited by exiges

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  • 316 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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