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willing

Could Irs Be Going Up Shortly?

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Just a quick thought, and probably not a good one!

With CPI now at 2.5% and well above target. . .

With the last .25% cut in IRs still widely seen as a move by the MPC that should be reversed at the earliest oppertunity. . . .

With a few current measures showing house prices reacting positively to the recent rate cut. . .

With Merv having voted against the recent rate cut by the MPC. . .

And with the replacement of a Hawk by a Dove in the MPC due next year. . .

Will the Hawks and waverers of the MPC now not see the next few months as the only time they can reverse their 0.25% cut? In other words could we be seeing a shock move by the MPC in coming months as they put IRs up, just so they can get it in before the new year's MPC shuffle?

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Just a quick thought, and probably not a good one!

With CPI now at 2.5% and well above target. . .

The real target for CPI is "between 1% and 3%" -- so in fact it's still well within target.

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The real target for CPI is "between 1% and 3%" -- so in fact it's still well within target.

No.

The target is 2%.

The 1% and 3% are trigger bands that if passed require Merv to write an open letter to Blair explaining why he's so far off his 2% target.

Merv's only ray of sunshine is the fact that his target is a 2year one, allowing him the get out that he is aiming for a 2% rate at 2 years out. However, make no mistake - the target is 2% and if either of the 1% or 3% trigger bands are attained it would be seen as a huge embarassment for the MPC and their credibility would suffer a knock.

You have misunderstood the meaning of the terms hawk & dove.

http://business.timesonline.co.uk/article/...1830428,00.html

erm. . .maybe!

My understanding is that a Dove views things from a status quo, softly softly approach.

Where as a Hawk favours action/reaction.

Of course you could be refering to a Dove as a medium sized, puffed up, pidgeon-like bird - if so I think you may have mis-interpreted my post. ;)

Edited by willing

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You have misunderstood the meaning of the terms hawk & dove.

http://business.timesonline.co.uk/article/...1830428,00.html

No, you haven't read the post properly:

And with the replacement of a Hawk by a Dove in the MPC due next year. . .Will the Hawks and waverers of the MPC now not see the next few months as the only time they can reverse their 0.25% cut?

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Guest Time 2 raise Interest Rates

There's a chap on Sky news active (business) just said Mervyn King

said yesterday "there's no chance of an interest rate cut", or as he

put it "over his dead body".

Anyone with Sky news active, have a listen. :)

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No.

The target is 2%.

The 1% and 3% are trigger bands that if passed require Merv to write an open letter to Blair explaining why he's so far off his 2% target.

Merv's only ray of sunshine is the fact that his target is a 2year one, allowing him the get out that he is aiming for a 2% rate at 2 years out. However, make no mistake - the target is 2% and if either of the 1% or 3% trigger bands are attained it would be seen as a huge embarassment for the MPC and their credibility would suffer a knock.

erm. . .maybe!

My understanding is that a Dove views things from a status quo, softly softly approach.

Where as a Hawk favours action/reaction.

Of course you could be refering to a Dove as a medium sized, puffed up, pidgeon-like bird - if so I think you may have mis-interpreted my post. ;)

:D

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  • 301 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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