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gruffydd

Ecb Rates Definitely Going Up In December

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Trichet re-affirms ECB rate rise

http://news.bbc.co.uk/1/hi/business/4457130.stm

for full story

"Mr Trichet's comments were seen as an early announcement

Jean-Claude Trichet, president of the European Central Bank (ECB), has told the EU Parliament rates must go up.

The ECB has maintained interest rates at 2% for five years, but now believes that rates need to go up to tackle the threat of oil-driven inflation.

Mr Trichet said that "the governing council is ready to take a decision to moderately augment the present level of interest rates" at its next meeting. "

Edited by gruffydd

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The US are most likely going to continue tightening the Fed rate until it hits "neutral" or around 4.75%. Sterling is already headed down against the US dollar (1.71 today--it was around 1.85 a month ago). What is Gordon going to do to prevent another sterling crisis? Lower rates? He has no choice but to keep in step with the rest of the world and increase rates. The long awaited HPC has its catalyst.

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What I dont get about this interest rate debate is if Europe and USA are rising rates and the market is factoring this in and its all expected, and this will cause sterling to drop, which using basic economics will lead to inflation (oil etc) why is the market, journalists and everyone looking at rate drops early in Spring? And not even mention sterlings fall as a result of this? Are we on HPC putting too much weight on the need to stablise the £ via amateur economic analysis. Or is it all some concerted spin machine to boost public confidence and spending and hence keep the economy chugging along via NuLabour, amateur journalists respouting the spin?

I find it all very confusing as the cases made on here seem thought out and no less amaetur than experts who write in business pages. One would expect the markets to get it correct and the expectation is future rates to be lower (though admit I dont know by when or by how much!)

Any thoughts

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why is the market, journalists and everyone looking at rate drops early in Spring?

Because they think the BoE is run by idiots who care more about the housing market than the rest of the economy. Which may be true, but is yet to be proven.

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What I dont get about this interest rate debate is if Europe and USA are rising rates and the market is factoring this in and its all expected, and this will cause sterling to drop, which using basic economics will lead to inflation (oil etc) why is the market, journalists and everyone looking at rate drops early in Spring? And not even mention sterlings fall as a result of this? Are we on HPC putting too much weight on the need to stablise the £ via amateur economic analysis. Or is it all some concerted spin machine to boost public confidence and spending and hence keep the economy chugging along via NuLabour, amateur journalists respouting the spin?

I find it all very confusing as the cases made on here seem thought out and no less amaetur than experts who write in business pages. One would expect the markets to get it correct and the expectation is future rates to be lower (though admit I dont know by when or by how much!)

Any thoughts

Here you go Mr Sminty:

Sterling could be a sitting duck

At least it has been mentioned.

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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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