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VeryMeanReversion

Boe Held At 0.5%

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It is the "insipid" recovery to blame, isn't it?

http://www.bloomberg.com/news/2011-08-03/king-may-prevail-as-insipid-recovery-hurts-rate-increase-case.html

King Prevails as ‘Insipid’ U.K. Recovery Undermines Case for Rate Increase

Spencer Dale and Martin Weale may be losing ground in their push against Governor Mervyn King for higher borrowing costs after the Bank of England kept its key rate at a record low amid signs of a faltering recovery.

The central bank’s nine-member Monetary Policy Committee left its benchmark interest rate at 0.5 percent today, as predicted by all 55 economists in a Bloomberg News survey. The decision came after reports showed the economy grew just 0.2 percent in the second quarter and manufacturing shrank in July.

The fading recovery, a worsening debt crisis in Europe and signs of weakening U.S. growth mean U.K. officials are having to set aside concerns about inflation that’s more than double their 2 percent target. Some central banks are going further. Turkey cut its benchmark rate to a record low today, while Swiss and Japanese officials have tried to stem appreciating currencies as investors seek havens amid the debt turmoil.

“They’re in limbo land at the moment,” said George Buckley, chief U.K. economist at Deutsche Bank AG in London. “I think it’s going to be a while before we see any move in either direction, but I think the next move will still be up because we’re looking for more solid gains in the economy in the second half.”

The Bank of England also left its bond-purchase plan at 200 billion pounds ($327 billion), as forecast by all 37 economists in a separate Bloomberg survey......"

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I see on the Telegraph article comments section that savers are complaining about being punished. When are savers going to do something about it, apart from just moaning?

Is the money better kept in savers pockets or spent thus directing it into the pockets of those that least deserve it to only waste it.....it is not only the savers that are being punished, we all are that live in the real world....only the few are reaping the rewards, intended manipulation by the powerful that hold all the cards ....all will be revealed when they lay them on the table. ;)

Edited by winkie

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I see on the Telegraph article comments section that savers are complaining about being punished. When are savers going to do something about it, apart from just moaning?

They'll do something when it's all too late, then the very people who have meticulously saved all their lives will most probably end up buying into something just before it goes up in flames... Although that said if we end up with another Northern Rock type scenario I can see bank accounts simply being emptied and stuffed under the mattress...

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I see on the Telegraph article comments section that savers are complaining about being punished. When are savers going to do something about it, apart from just moaning?

What can we do?

Rioting in the streets would only be a form of moaning.

I can’t exactly take my money offshore at the current appalling exchange rate and I think that the stock market's still has much more downside than up and that gold has reached its peak, so where should I invest?

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What can we do?

Rioting in the streets would only be a form of moaning.

I can’t exactly take my money offshore at the current appalling exchange rate and I think that the stock market's still has much more downside than up and that gold has reached its peak, so where should I invest?

Nothing wrong with going offshore now, better late than too late. However, what paper currency are you going to convert to? There are no national currency safe havens.

Why do you believe gold has peaked? We still have unpayable national debts which are just getting ever larger, negative interest rates, QE. What is there to make it attractive to hold paper money?

It will be very advantageous to switch from gold into equities, but not yet.

DJIA-Gold-Ratio_LOG_GUESS.png

or UK property

UK_House_Prices_in_Gold_LOG_GUESS.png

Edited by Take Me Back To London!

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But what can savers actually do? Unlike poll-tax rioters we're not exactly the Wild Bunch.

Savers are already doing it - they have withdrawn their spending from the retailers. Oh the irony for he, the Sir Merv

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  • 343 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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