Jump to content
House Price Crash Forum
Sign in to follow this  
Boom'n'Bust

Bank To Hold Rates Despite House Price Decline

Recommended Posts

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?

Share this post


Link to post
Share on other sites
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 by laughing_goat

Share this post


Link to post
Share on other sites
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...

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 338 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%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.