@contradevian Posted January 28, 2014 Share Posted January 28, 2014 (edited) News just in... http://www.tradingfl...mpaign=new-post No danger of that here. Thanks to BoE vigilance! Edited January 28, 2014 by aSecureTenant Quote Link to comment Share on other sites More sharing options...
R K Posted January 28, 2014 Share Posted January 28, 2014 News just in... http://www.tradingfl...mpaign=new-post No danger of that here. Thanks to BoE vigilance! Didn't do Lamont much good when he tried it. Short term bouncey bouncey though. Quote Link to comment Share on other sites More sharing options...
Democorruptcy Posted January 28, 2014 Share Posted January 28, 2014 How do you take advantage of the interest rate while offsetting depreciation of any money invested? Quote Link to comment Share on other sites More sharing options...
council dweller Posted January 28, 2014 Share Posted January 28, 2014 Right that`s it. My Nationwide ISA money will come out in 75 days and go under my bed! It`s only paying 1% anyway.....bar stewards. Quote Link to comment Share on other sites More sharing options...
Guest TheBlueCat Posted January 29, 2014 Share Posted January 29, 2014 It's really strange that any country would try this given the history of failed attempts to prop up currencies using the base rate. I wonder if there's something else going on in the background? Quote Link to comment Share on other sites More sharing options...
Biggus Posted January 29, 2014 Share Posted January 29, 2014 They have probably decided investment is better for the economy than consumption. Increased rates means people save instead of consume and banks lend to business and enterprise instead of to people who want to buy imported plastic tat. Hence business grows and people get wealthier. Or you could believe Keynes and decide that everyone spending all their money on imported rubbish will make them rich. I guess if you are really motivated you can manage to believe that obvious clap trap. Quote Link to comment Share on other sites More sharing options...
awaytogo Posted January 29, 2014 Share Posted January 29, 2014 News just in... http://www.tradingfl...mpaign=new-post No danger of that here. Thanks to BoE vigilance! Thats funny India have put theirs up from 7.75% http://www.bbc.co.uk/news/business-25923743 To 8% Quote Link to comment Share on other sites More sharing options...
@contradevian Posted January 29, 2014 Author Share Posted January 29, 2014 Or you could believe Keynes and decide that everyone spending all their money on imported rubbish will make them rich. I guess if you are really motivated you can manage to believe that obvious clap trap. Have you ever read Keynes because I don't recall him saying that at all. Quote Link to comment Share on other sites More sharing options...
Killer Bunny Posted January 29, 2014 Share Posted January 29, 2014 (edited) Thats funny India have put theirs up from 7.75% http://www.bbc.co.uk/news/business-25923743 To 8% Except that makes 3 rises since July. From 7.25%. Brazil too has raised from 7% to 10% from the Summer. Emerging Markets are strengthening their currencies after huge sell offs. Edited January 29, 2014 by Killer Bunny Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted January 29, 2014 Share Posted January 29, 2014 Can I state this isn't a panic measure, it's a decision in which a great deal of thought has gone into it. Quote Link to comment Share on other sites More sharing options...
JPJPJP Posted January 29, 2014 Share Posted January 29, 2014 Can I state this isn't a panic measure, it's a decision in which a great deal of thought has gone into it. If I was an orthopedic surgeon specialising in repairing jerked knees, I would be offering my services to the Turkish Central Bank and Government I wouldn't, however, be taking payment in Lira, only £££ Quote Link to comment Share on other sites More sharing options...
anonguest Posted January 29, 2014 Share Posted January 29, 2014 It's really strange that any country would try this given the history of failed attempts to prop up currencies using the base rate. I wonder if there's something else going on in the background? I was thinking pretty much the same thing. Given that it didn't work, for very long, for a bigger more stable less corrupt etc nation like the UK....why would they think it would do the trick in Turkey. In fact wouldn't such a huge rise merely make the market 'smell' blood and actually have an effect of accelerating Turkeys unravelling?....... Quote Link to comment Share on other sites More sharing options...
Sancho Panza Posted January 29, 2014 Share Posted January 29, 2014 I wonder if there's something else going on in the background? Panic? Quote Link to comment Share on other sites More sharing options...
anonguest Posted January 29, 2014 Share Posted January 29, 2014 I was thinking pretty much the same thing. Given that it didn't work, for very long, for a bigger more stable less corrupt etc nation like the UK....why would they think it would do the trick in Turkey. In fact wouldn't such a huge rise merely make the market 'smell' blood and actually have an effect of accelerating Turkeys unravelling?....... Based on the overnight currency move.....I was 'right'? - much more quickly than I thought. The exchange rate of the lira is back to where it was pre-rate hike. Quote Link to comment Share on other sites More sharing options...
jimmythefinger Posted January 29, 2014 Share Posted January 29, 2014 They have probably decided investment is better for the economy than consumption. Increased rates means people save instead of consume and banks lend to business and enterprise instead of to people who want to buy imported plastic tat. Hence business grows and people get wealthier. Or you could believe Keynes and decide that everyone spending all their money on imported rubbish will make them rich. I guess if you are really motivated you can manage to believe that obvious clap trap. I've just had an email from a Turkish company that is dumping stock at huge reductions - is this a coincidence? Quote Link to comment Share on other sites More sharing options...
Killer Bunny Posted January 29, 2014 Share Posted January 29, 2014 I've just had an email from a Turkish company that is dumping stock at huge reductions - is this a coincidence? Tell me when they're dumping bonds Quote Link to comment Share on other sites More sharing options...
Killer Bunny Posted January 29, 2014 Share Posted January 29, 2014 Except that makes 3 rises since July. From 7.25%. Brazil too has raised from 7% to 10% from the Summer. Emerging Markets are strengthening their currencies after huge sell offs. And S Africa raises too... Clearly a concerted group effort to avoid massive outflows of capital. If it were just one they'd never manage. But all of them? Quote Link to comment Share on other sites More sharing options...
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