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Sancho Panza

Bank Of England Fuels Rate Rise Speculation

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Sky/Yahoo 23.10.13

'Speculation has intensified that the Bank of England may start to lift the base rate of interest earlier than it had anticipated.

Minutes of the last meeting of the Monetary Policy Committee (MPC (KOSDAQ: 050540.KQ - news) ) showed the nine-member panel believed unemployment was falling and the economy growing faster than previously expected.

The October meeting concluded that joblessness in the second half of the year looked set to be lower than was thought at the time the bank published its new forward guidance policy on rates in August.

New governor Mark Carney announced then that the base rate would not be increased from its historic low of 0.5% until after unemployment had fallen to 7% in a bid to give mortgage customers, the consumer and markets some idea of a timeframe to prepare.

The Bank had indicated at the time that this was not likely to happen until 2016.

But most economists are convinced that this will happen much more quickly and now the Bank has hinted that it is starting to come around to their point of view.

Latest jobs figures showed the unemployment rate at 7.7% and a fall in the number of those claiming Jobseeker's Allowance together with surveys of employers' intentions, suggested it would drop over the rest of the year.

This fall was likely to be "at a faster pace than anticipated at the time of the August inflation report" - the time when the Bank unveiled the forward guidance policy, the minutes said.

The MPC meeting agreed unanimously to leave the base rate at 0.5% and maintain the quantitative easing (QE) programme pumping money into the economy at £375bn.

None of the nine-member committee wanted to tighten policy - cutting QE or raising rates - while improvements in the economy meant all agreed there was little case for increasing monetary stimulus further, the papers revealed.'

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No chance of a rise. How would Cameron win the election if the mortgages of hard working families went up. This is just speculation to pretend they are keeping an eye on things ... like 10% rise in London asking prices is not a bubble as the BoE have not commented other than to say house prices are nothing to do with them.

The scene is set now for the election and a main part of that is low interest rates, if inflation reaches 10% and unemployment is down to 1% they will still not raise interest rates ... yes the economy could crash in flames but they will not raise interest rates. MUST WIN ELECTION EVERYTHING ELSE IS EXPENDABLE.

This is why we must all vote Labour.

The control of IRs must be wrested from their grasp.

The only way for HPC is rate chaos.

Has always been that way.

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This is why we must all vote Labour.

The control of IRs must be wrested from their grasp.

The only way for HPC is rate chaos.

Has always been that way.

So we must vote Labour in order to precipitate UK bankruptcy and IMF intervention in order to have mass unemployment, all in order to get an HPC? Is it really worth it?

Given that this lot of Tories didn't have the guts or values to do what Major's government did(ie allow a crash) and have shamelessly printed money and spent as if they were Labour themselves, maybe you're right.

I really hope I don't have to go back to the UK.

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Maybe it's the HPC cultivated cynic in me, but I cannot believe that raising interest rates is ever going to be seriously considered by the BOE again. Ever.

Anyone got a link to a good HPC thread the day they dropped it to 0.5%? I could do with a laugh...

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This is why we must all vote Labour.

The control of IRs must be wrested from their grasp.

The only way for HPC is rate chaos.

Has always been that way.

who dropped the rates to 0.5% after keeping them too low for too long.?

who started QE?

it was New Labour - be careful what you wish for.

Edited by olliegog

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who dropped the rates to 0.5% after keeping them too low for too long.?

who started QE?

Whooooooosh!!!!

I may, or may not, be right about what happens if Labour get in, but it would help if you grasped the point i was making.

Ive been banging on about this for yonks. (Too long) :(

Edited by shindigger

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The BofE really doesn't matter any more. They've set course for a currency crisis, and they haven't a chance of stopping it now.

It's over for the BofE.

Completely agree.

It's not just the Pound, but also the dollar and possibly the Euro. It is not going to happen over night but there will be another crisis if they do or don't increase interest rates.

Essentially the bigger the credit/stock/prime housing bubble becomes the harder it is to reverse the 0% interest rate and if they don't reverse it the bigger it becomes.

Eventually the bubble becomes so big the rate of credit creation becomes exponential and it collapses. We are a couple of years from that yet. Keiser reckons 18 months, but I would give it 24, but never mind there are still some cheap assets out there outside of stocks and property.

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So we must vote Labour in order to precipitate UK bankruptcy and IMF intervention in order to have mass unemployment, all in order to get an HPC? Is it really worth it?

Given that this lot of Tories didn't have the guts or values to do what Major's government did(ie allow a crash) and have shamelessly printed money and spent as if they were Labour themselves, maybe you're right.

I really hope I don't have to go back to the UK.

Its all coming whatever they do...the longer they hold up the roof, the more weight will crush what we have built....the airspace of credit will dissolve...the roof will collapse to bedrock.

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So we must vote Labour in order to precipitate UK bankruptcy and IMF intervention in order to have mass unemployment, all in order to get an HPC? Is it really worth it?

Given that this lot of Tories didn't have the guts or values to do what Major's government did(ie allow a crash) and have shamelessly printed money and spent as if they were Labour themselves, maybe you're right.

I really hope I don't have to go back to the UK.

Yeah, why not? I've got the popcorn ready. A reset is what is required.

Not that I believe the choice of political party has any real influence anyway. It's going to happen regardless eventually.

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It would be amusing if this talking up the economy act and massaging of the indices by the right hand resulted in the left hand raising rates. Believing their own bull and ironically doing the right thing by mistake.

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It would be amusing if this talking up the economy act and massaging of the indices by the right hand resulted in the left hand raising rates. Believing their own bull and ironically doing the right thing by mistake.

Not a chance. Theyre all in on it and know exactly what they are doing.

We need something or someone, from outside the UK to stop their little game.

I feel if Labour were in charge we would come under much harsher scrutiny, thats why i want them to win the next election.

Though how the current spiv bastards are getting away with it, i have no idea.

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This is why we must all vote Labour.

The control of IRs must be wrested from their grasp.

The only way for HPC is rate chaos.

Has always been that way.

I think there is another way to HPC and that's higher inflation we need to get it higher against falling & static wages and pension annuities. Overwelming household budgets to get forced sales could be the key

Also at the same time willingness to wanting to take on big debts will change and market sentiment will change in our favour.

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http://www.theguardian.com/business/economics-blog/2013/oct/22/incorrect-employment-growth-figures-low-productivity

The jobs numbers are being manipulated by the ONS to make unemployment look artificially good.

I'm sure if they need u/e to be higher to stop rate rises they'll just "adjust" some figures.

It appears that if the public believe things are going well then better GDP follows the confidence. Also hard to believe that the housing market is booming like the surveys point to. The rightmove one, in particular, based on asking prices as opposed to selling prices is very misleading.

But the public tired of six years of gloom are willing to be misled and go on spend fest to boost GDP.

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It appears that if the public believe things are going well then better GDP follows the confidence. Also hard to believe that the housing market is booming like the surveys point to. The rightmove one, in particular, based on asking prices as opposed to selling prices is very misleading.

But the public tired of six years of gloom are willing to be misled and go on spend fest to boost GDP.

I think they have put all their eggs in one basket but i think the above is the plan

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