Boom'n'Bust Posted October 3, 2005 Share Posted October 3, 2005 http://news.independent.co.uk/business/new...ticle316727.ece Bank to hold rates despite house price decline The latest sign of weak but stable conditions in the housing market is unlikely to prompt the Bank of England to take any action on interest rates this week. Quote Link to comment Share on other sites More sharing options...
apom Posted October 3, 2005 Share Posted October 3, 2005 So. They will look at it again next month.. Now if they are looking to decrease the levels of borrowing, or at least are afraid of what would happen if borrowing kept on a current rates.. I have two diverse points. 1) Unlikely to drop pre christmas.. as this is a well known time of spending against debt. 2) What does this mean to house prices. If they want to reduce the expansion of debt then current prices would mean that the debt burden would have to increase hugely if it was maintained. This sutied the government for a while.. Higher stamp duties at one end.. At the other.. death duties as properties were sold and entered into the high tax bracket.. Is this where a good chunk of all of this mythical money went? Quote Link to comment Share on other sites More sharing options...
laughing_goat Posted October 3, 2005 Share Posted October 3, 2005 (edited) So.They will look at it again next month.. Now if they are looking to decrease the levels of borrowing, or at least are afraid of what would happen if borrowing kept on a current rates.. I have two diverse points. 1) Unlikely to drop pre christmas.. as this is a well known time of spending against debt. 2) What does this mean to house prices. If they want to reduce the expansion of debt then current prices would mean that the debt burden would have to increase hugely if it was maintained. This sutied the government for a while.. Higher stamp duties at one end.. At the other.. death duties as properties were sold and entered into the high tax bracket.. Is this where a good chunk of all of this mythical money went? I agree, I think Mervyn will be loathed to drop IR before Christmas, if he does want to drop the rate then he is more likely to do it in January. However, as we have seen the last time IR went down, all it takes is Gordon Brown's gang and one of the BOE members of the MPC to vote against him for the rate to be dropped by 0.25%. It worries me the amount of pressure that is being applied by the retailers (I expressed my disgust at this in a previous post this morning). I just hope the MPC, as they claim, don't listen to media hype. Edited October 3, 2005 by laughing_goat Quote Link to comment Share on other sites More sharing options...
Timmy Manson Posted October 3, 2005 Share Posted October 3, 2005 http://news.independent.co.uk/business/new...ticle316727.eceBank to hold rates despite house price decline The story is true but the spin is a lie. Try this for a better/ truer story "despite the falling housing market inflationary pressures in the economy are leaving the BOE in no position to lower rates" Quote Link to comment Share on other sites More sharing options...
Starcrossed Posted October 3, 2005 Share Posted October 3, 2005 The story is true but the spin is a lie. Try this for a better/ truer story "despite the falling housing market inflationary pressures in the economy are leaving the BOE in no position to lower rates" There seems to be a media embargo on increased inflation. Not surprising when it was reported this morning that the UK had the lowest wage settlements in Europe at 3.5% this year... Quote Link to comment Share on other sites More sharing options...
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