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John The Pessimist

Interest Rate Rises Will Cause Economic Shock

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Ms Barker warned that mortgage borrowers on variable rate loans were “the most exposed” to the risk of rate rises and should prepare for them.

Mr Sentance went further, saying the time had come to prepare for higher interest rates and that 2pc was a more realistic “neutral” level at the moment than the 0.5pc crisis rate.

“There are potentially serious consequences of ultra loose policy,” he said, citing the recent “unsustainable” rise in equity prices as one example.

There is not going to be an ideal time to move away from low interest rates. Growth is going to be slow for some time. I would like to see central banks beginning to prepare the way for a gradual rise in interest rates – to try to get the economy functioning a bit better.”

My emphasis in bold.

I know that in and of itself this sort of reporting doesn't mean very much, but they're making the right noises in my view. And perhaps it is indicative that rates may begin to move ever so slightly northwards in the next year or two? Or is that just wishful thinking?!

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I got up to; 'The first stage of unwinding [QE] ...' then stopped reading. QE will never unwind.

Now the economy needs perpetual QE they won't stop until they are forced although as everyone is now debasing it's become an intellectual cluster****.

This is why the base rate won't be raising. They will do everything they can to stop it from happening.

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Central Banksters: What they DO, not what they SAY.

Generally they'll say the exact opposite of what they do (or are going to do), in order to try to mitigate the bad effects of what they are doing.

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My emphasis in bold.

I know that in and of itself this sort of reporting doesn't mean very much, but they're making the right noises in my view. And perhaps it is indicative that rates may begin to move ever so slightly northwards in the next year or two? Or is that just wishful thinking?!

Incredible isn't it. Prepare for higher interest rates .... of 2%.

2% interest rates are incredibly low. Laughably low. Unfortunately for the sensible folk out there this is a new epoch, the overborrowed are all that matters thanks to the housing boom from 1997 onwards.

Edited by simon99

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‘We’ve had 177 days without a 5% [DOW] correction, and since 2007 we’ve had 512 central-bank interest-rate cuts, which is probably one of the more important numbers in the whole string of events.’

Art Hogan, Lazard Capital Markets

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  • 242 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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