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But how can this be??

David Smith and other so called "Economists" have been shouting that we would be on our third cut by now. . . . . . . .

Be interesting to see the stats and then the meeting minutes, especially if they have started voting for rises to give the markets the message. . .

:D

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and more bad news for Homeowners....

Most economists now believe that rates will be kept on hold until next year, but they are divided on when the Bank will make another move.

"As the data continue to firm and upside risks to inflation build, we believe the MPC will adjust interest rates higher in the New Year," said Alan Clarke, economist at BNP Paribas.

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and more bad news for Homeowners....

Most economists now believe that rates will be kept on hold until next year, but they are divided on when the Bank will make another move.

"As the data continue to firm and upside risks to inflation build, we believe the MPC will adjust interest rates higher in the New Year," said Alan Clarke, economist at BNP Paribas.

Yep, that is on the BBC website.

The more articles like this, the more sentiment will turn to people expecting higher rates rather than lower ones. This will further drive the high street down as people prepare to whether the storm.

That cut in August was a big mistake as the impact of talk about raising rates would have been held off for a little longer had this cut not taken place.. . :lol:

Mervyn was right and the cronies were wrong.

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But how can this be??

David Smith and other so called "Economists" have been shouting that we would be on our third cut by now. . . . . . . .

Be interesting to see the stats and then the meeting minutes, especially if they have started voting for rises to give the markets the message. . .

:D

I'm sure they just got caught out with 'unexpected inflationary pressures'.

Or we could plainly say that they just got it wrong.

Nevermind, we all make mistakes.

:huh:

P.S.

What really bugs me is the parp we've been hearing from certain economics journalists about the MPC cutting rates to boost spending in defiance of the MPC's primary objective, which is to control inflation.

ARGHHHH! I N F L A T I O N ! That's what the MPC targets!!

Mervyn King (God bless him...) has been well aware of this:

"I think a number of people in the last six months have been talking as if the MPC were targeting total demand or, even more oddly, targeting retail sales and consumer spending," King said. "We are not. We are trying to target inflation. We have an inflation target."

Sorry, I just had to get that off my chest.

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The knowledgeable people on this forum have explained several times the connection between US interest rates and UK interests rates. The Fed have told us that the US rate is set to continue upward and we know that the Euro rate is set to increase in the new year.

According to members of this forum the UK rate must also increase to prevent the value of the pound falling and pushing up the prices of imports.

The economic experts quoted in the press talk about the pressures from inflation pushing IR up and, on the other hand, the need to keep growth up and house prices stable as pressures to put IR down.

This Guardian piece for example makes no mention of US rates, foreign trade and exchange rates.

Do we know something that the journalists don't?

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The knowledgeable people on this forum have explained several times the connection between US interest rates and UK interests rates. The Fed have told us that the US rate is set to continue upward and we know that the Euro rate is set to increase in the new year.

According to members of this forum the UK rate must also increase to prevent the value of the pound falling and pushing up the prices of imports.

The economic experts quoted in the press talk about the pressures from inflation pushing IR up and, on the other hand, the need to keep growth up and house prices stable as pressures to put IR down.

This Guardian piece for example makes no mention of US rates, foreign trade and exchange rates.

Do we know something that the journalists don't?

Yeah, I thinks it's called a knowledge of basic economics... Ha ha!!

:)

On a more serious point. I wonder how much of the economic analysis that goes on by journalists is influenced by 'predetermined objectives'. I often wonder how many arguments are derived to suit a particular stance, which is rather like putting the cart before the horse.

:ph34r:

P.S.

On putting the cart before the horse, isn't this the equivalent of rear wheel drive for cars? It could be quicker around the bends but might be more difficult to control in the wet.

Edited by werewolves

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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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