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E C B Raise Euro Rates To 1.5%

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Strongarming the PIIGS.

A quarter percent rise of the ECB rate makes no difference at all for the 11% - 17% rates that Portugal, Ireland and Greece have to pay in the open market.

The ECB rate rise is irrelevant for the PIGS.

Edited by awake_eagle

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But why is the ECB worried about inflation when the BOE positively stokes it?

Easy, they have different objectives:

the BOE is trying to run the pound in the ground, while the ECB is trying to keep the Euro alive.

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But why is the ECB worried about inflation when the BOE positively stokes it?

They aren't, it has naff all to do with inflation. It has even less to do with inflation that BoE policy does.

They have just realised that they can compete with the rest of the world just fine with an even stronger euro.... and also they can gain further advantage from reducing their effective import costs.

("They" can be replaced with "Germany" in the above)

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But why is the ECB worried about inflation when the BOE positively stokes it?

I think Merv would say it's different type of inflation.

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I think Merv would say it's different type of inflation.

You mean like the "wrong kind of snow" excuse when the railways weren't functioning? :lol:

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You mean like the "wrong kind of snow" excuse when the railways weren't functioning? :lol:

Yes. And all the other bull these shits spew from there ever increasing greedy little faces.

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A quarter percent rise of the ECB rate makes no difference at all for the 11% - 17% rates that Portugal, Ireland and Greece have to pay in the open market.

The ECB rate rise is irrelevant for the PIGS.

But not, perhaps, for mortgage holders.

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IMO ECB is worried about the German economy than they are Europe as a whole. BOE and FED consider current inflation has temporary. Why would ECB view on inflation be different. However, with ECB raising rates and China raising rates and India having raised rates in May- could global economic growth weaken. By so doing also slow down global inflation? Then the FED and the BOE would not have to raise rates

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Spain Real Estate was already dying.......now it needs CPR. The only thing attracting any buyers to Spain is bank repos where they were offering 100% finance (Yes still at it on the CDS) and Low interest rates that still meant it was attractive to own. However rents have halved...in some places down to 35% of peak, and now mortgage costs are going up. Net effect all the Brits heavily mortgaged in Neg equity will be forced to hand back keys as rent will no longer cover mortgage.

Those that were going to buy see their repayment going up so pull out.......and only sales made are the 100% finance and 3 years repayment free or reduced fixed repayment.

Adios Espagne...

N.

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But not, perhaps, for mortgage holders.

Maybe in Ireland, but in southern Europe long-term fixed mortgages are the norm and lending ratios have always been far more conservative than in the UK, so I don't think mortgage holders will be concerned.

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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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