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Uk Base Rates - What If Anything Can Get Them To Rise?

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In the light of the report and minutes ( http://uk.reuters.com/article/2011/08/17/uk-britain-boe-idUKTRE77G16P20110817 ) and apparent lack of concern the MPC has that inflation is double plus the target, etc, a few quick questions :

Is anything likely in the next few months to get the UK base rate up, anything that's beyond the MPC's control?

Even if the UK were to lose her AAA, would they not just print more to keep rates down?

The US has lost her AAA from S&P but her rates remain where they were. Have the US, Greece or Eire had to pay savers/depositors more interest since they lost their ratings?

Is it not now the case that the MPC seek to keep rates very low because HM Govt owes so much? And that they can almost 100% ensure this goes on indefinitely if they QE?

If this has been discussed at length on another thread, a link to it would be welcomed

41578_175334750335_1680452_n.jpg

Ha!

Edited by inflating

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Nope, no way jose not now not EVER even if we are paying for bread in quintillions of pounds.

A whole load of savers voting for UKIP and BNP.

I'll vote for any party, other than the main 3, who promise to raise interest rates to 10%.

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Do we need IR rises for the HPC now ?

People's disposable income has disappeared over the last 3 years.

I know a few people who are close to loosing it all even with the ultra low IRs.

What we do need are the banks to stop lending and start repossessing to get money to pay their debts down, how/when will that happen is a better question?

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A whole load of savers voting for UKIP and BNP.

I'll vote for any party, other than the main 3, who promise to raise interest rates to 10%.

And if those parties started to gain power the main 3 would ban them.

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Yes we do, just to make sure.

:lol:

And if those parties started to gain power the main 3 would ban them.

They might get away with banning the BNP but try and ban UKIP and you will see the predicted protests on the street

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People's disposable income has disappeared over the last 3 years.

This is true, but for those with property their disposable income has probably gone up.

What I don't understand is where the rent rises are coming from. They should be linked to disposable income and/or available government benefits, both of which are falling.

If we continue with ZIRP and still see rents rising (let alone further QE), then I'm not sure property prices will fall that much ... can't believe I'm now thinking this!!!!

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This is true, but for those with property their disposable income has probably gone up.

What I don't understand is where the rent rises are coming from. They should be linked to disposable income and/or available government benefits, both of which are falling.

If we continue with ZIRP and still see rents rising (let alone further QE), then I'm not sure property prices will fall that much ... can't believe I'm now thinking this!!!!

Rent rises increase GDP.

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:lol:

They might get away with banning the BNP but try and ban UKIP and you will see the predicted protests on the street

Even if UKIP stood a chance of a majority, I doubt anything would change, it'll be a case of "We can't...because..." as ever. Didn't Cameron criticise printed money and inflation in '09, and yet...

This is true, but for those with property their disposable income has probably gone up.

What I don't understand is where the rent rises are coming from. They should be linked to disposable income and/or available government benefits, both of which are falling.

If we continue with ZIRP and still see rents rising (let alone further QE), then I'm not sure property prices will fall that much ... can't believe I'm now thinking this!!!!

Yes, this is something I was wondering, how is it happening?

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Do we need IR rises for the HPC now ?

People's disposable income has disappeared over the last 3 years.

I know a few people who are close to loosing it all even with the ultra low IRs.

What we do need are the banks to stop lending and start repossessing to get money to pay their debts down, how/when will that happen is a better question?

The 2 things that would force interest rates up are

1) Real recovery (leading to velocity) or

2) Currency crisis

Cant see either happening for a good 5 years+ myself (with 2) starting then

However an increase in rates isnt a requirement for houseprice falls, all it needs is a technical recession which would result in deleveraging and destruction of some of the Credit Money in the system

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What If Anything Can Get Them To Rise?

Economic collapse?

Coming soon to a country near you.

It looks as if whatever happens, they can just print, they don't have to worry about Gilt buyers losing interest, am I correct or only partially correct? The DMO must be having a very easy job as one Mr M King buys a good chunk each time (in effect)

Edited by inflating

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The 2 things that would force interest rates up are

1) Real recovery (leading to velocity) or

2) Currency crisis

Cant see either happening for a good 5 years+ myself (with 2) starting then

However an increase in rates isnt a requirement for houseprice falls, all it needs is a technical recession which would result in deleveraging and destruction of some of the Credit Money in the system

No velocity for 5 years? How so, please?

If there were a recovery they'd still make excuses and keep rates sub 1% wouldn't they?

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It looks as if whatever happens, they can just print, they don't have to worry about Gilt buyers losing interest, am I correct or only partially correct? The DMO must be having a very easy job as one Mr M King buys a good chunk each time (in effect)

Yes they have learnt very well from Mr Mugabe, you can print money and buy your own bonds, this time next year rodney we'll be trillionaires*

*Bread will be 9^10^2312637421674638746382482343243242342342342342 pounds if you get to the shop first thing in the morning

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Yes they have learnt very well from Mr Mugabe, you can print money and buy your own bonds, this time next year rodney we'll be trillionaires

How easily the rot spreads, shame they do not learn from Poland's awful inflation past and the lessons they learnt (although there's talk of a rate cut in Poland now http://www.bloomberg.com/news/2011-08-16/polish-bond-investors-curb-inflation-bets-as-rate-cut-becomes-more-likely.html )

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The 2 things that would force interest rates up are

1) Real recovery (leading to velocity) or

2) Currency crisis

Cant see either happening for a good 5 years+ myself (with 2) starting then

However an increase in rates isnt a requirement for houseprice falls, all it needs is a technical recession which would result in deleveraging and destruction of some of the Credit Money in the system

5 years?

I thought you had sterling going going gone in 2013?

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In the light of the report and minutes ( http://uk.reuters.com/article/2011/08/17/uk-britain-boe-idUKTRE77G16P20110817 ) and apparent lack of concern the MPC has that inflation is double plus the target, etc, a few quick questions :

Is anything likely in the next few months to get the UK base rate up, anything that's beyond the MPC's control?

Even if the UK were to lose her AAA, would they not just print more to keep rates down?

The US has lost her AAA from S&P but her rates remain where they were. Have the US, Greece or Eire had to pay savers/depositors more interest since they lost their ratings?

Is it not now the case that the MPC seek to keep rates very low because HM Govt owes so much? And that they can almost 100% ensure this goes on indefinitely if they QE?

If this has been discussed at length on another thread, a link to it would be welcomed

IMO the economy is unable to stand on own 2 feet since credit crunch recession. It still needs a help hand ( walking stick) in the form monetary stimulus ( low interest rates, QE) and if this continues fiscal stimulus of some form. I cannot see interest rates rising given low expectations on the prospects of diminishing global growth.

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Which would be resolved by our old friend..... THE PRINTING PRESSES!

Heads I win tails you lose.

Have to disagree with you there, Ken. At some point some major currency will have to raise it's interest rate and the others will have to follow. The only question is when.

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Have to disagree with you there, Ken. At some point some major currency will have to raise it's interest rate and the others will have to follow. The only question is when.

If Sir Merv is all printyprinty, why does the Bankrupt of England have to raise rates if other countries do? The UK DMO competing for buyers of its debt? But the BofE is the buyer for UK bonds anyway via the printing press, so is there still a need to raise rates? They want the pound low anyway, don't they. Inflation they also seem to want, and they also want a wage spiral I imagine, GDP damaging or not, although they may say otherwise. Please, if I'm wrong don't hold back

(I think they've also made it mandatory for UK banks to buy Gilts, just to further ensure their debt is bought afaik even on low rates)

Edited by inflating

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  • 333 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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