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Boe Minutes Hint At Rate Rise

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Al JaBeeba


  • INTEREST RATES Via Twitter Simon Jack Business correspondent, BBC News tweets: "Bank of Eng minutes - "the monetary policy decision was becoming more balanced" + if we want to raise gradually we may have to start early."
  • BOE MINUTES Via Twitter Jonathan Ferro, Bloomberg TV Markets Reporter tweets: "Hard to know how much you can take from these BoE minutes given the big changes on the MPC from next month and through summer."
  • BOE MINUTES Via Twitter Robert Peston Economics editor tweets: "Bank of England discloses that some members of Monetary Policy Committee are beginning to think time may be close for interest rate rise."
  • BOE MINUTES 09:43:Here's the crucial sentence in those BoE minutes: "Among the elements on which members held different views were: the extent of slack remaining within companies; what proportion of self-employment represented a form of labour market slack; and the extent to which increases in employment might at the margin add less to the productive capacity of the workforce than factored into the Committee's projections."
  • The pound jumped following the release of the minutes from the most recent meeting of the interest rate setting committee at the Bank of England. It hit $1.6917 against the dollar.
  • BOE MINUTES 09:42:
    In the last few months, there has been a broad consensus among MPC members at Bank of England meetings, but that seems to have changed. There was a "range of views on the Committee" on the margin of spare capacity in the economy, the minutes reveal.

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Appeasement.

If they raise rates before 2016, I'll eat my cat.

they're quite tasty with some teriyaki marinade on the BBQ - good time of year for it! The tricky bit is always skinning them.

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Any resonable rational person should have worked it out that the only way is up.....they had plenty of time to plan for it, not as if 0.5% would be on the cards forever.....the shrewed would have paid as much down as they could while they could or not bitten off more than they could chew....the answer is to downsize taking any growth with them to keep payments the same so having less debt to service....less turns out to be more. ;)

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they're quite tasty with some teriyaki marinade on the BBQ - good time of year for it! The tricky bit is always skinning them.

On the contrary - I'm often told that cat-skinning is not inhibited by a solitary approach

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Making the right noises by having interest rate rises and house building programmes on the agenda. But the indebted speculators will always come first and nothing will happen.

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Any resonable rational person should have worked it out that the only way is up.....

Not in Japan for 20+ years

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Minutes sounding very like those of Bank of Canada b4 their hikes.

Funny thing was CAN$ came down like lead after the hikes - sell the news

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Not in Japan for 20+ years

We are not Japan......we don't work like Japan or do things like Japan does.........two wrongs do not make a right.

We are not talking massive interest rate rises....2% or 3%....if the country can't stand that it must be in a dire state of affairs..... :o

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We are not Japan......we don't work like Japan or do things like Japan does.........two wrongs do not make a right.

We are not talking massive interest rate rises....2% or 3%....if the country can't stand that it must be in a dire state of affairs..... :o

Part of the reason we have not done things like Japan is that we have seen how ineffective the policies have been over the period.

There are enough similarities to learn from them.

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.

We are not talking massive interest rate rises....2% or 3%....if the country can't stand that it must be in a dire state of affairs..... :o

A 2% or 3% rise seems about right to me that would make rates some where between 0.51% to 0.515% :P

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A 2% or 3% rise seems about right to me that would make rates some where between 0.51% to 0.515% :P

Part of the reason we have not done things like Japan is that we have seen how ineffective the policies have been over the period.

There are enough similarities to learn from them.

The UK is Japan on fast-forward. Abenomics is next and when that fails a sovereign default.

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On the contrary - I'm often told that cat-skinning is not inhibited by a solitary approach

You mean there's more way of skinning a cat?

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If the recovereh starts to come off the boil, with an absence of earnings from net trade, then either govt. is going to have to increase the deficit again, or the private sector is going to have to re-leverage.

That means they're either going to have to allow the housing boom to keep going, and probably widen/deepen geographically, or else they'll need to find some other patsy to take on private sector debt.

But who this time? Even higher student fees? Something else?

Surely they'll decide the most politically palatable option (for all parties) is another housing boom, but they'll keep their fingers crossed that macro-pru will keep the lid on it turning into another UK wide bubble.

Have my doubts that's even possible.

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If the recovereh starts to come off the boil, with an absence of earnings from net trade, then either govt. is going to have to increase the deficit again, or the private sector is going to have to re-leverage.

I wouldn't be surprised to see some big incentives for home builders in autumn - enforce brownfield development of 400K new homes in next 2yr along with some big shovel-ready projects like a Thames airport.

That 1.4M Cameron flat thing might be quite important - sometimes it can take something like that to put a situation in to perspective for a leader - it's much more powerful than carefully crafted civil service charts - a married pair of top surgeons could not now get a mortgage on Cameron's FTB flat.

Edited by slacker

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You mean there's more way of skinning a cat?

There sure is.

In other news, I'm quite miffed that I can't eat this cake which I have.

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Blah Blah Blah interest rates.

Actions not words are what count. Having said this the banks are going to have one hell of a problem, the banks have been raising mortgage rates despite the base rate stating that they aren't linked it is Libor that counts.

To the sheeple who will have only heard what they want too, they will have heard "BOE rate means nothing to you unless you are on a base rate tracker".

The screams of anguish are going to be deafening. Those on a tracker will be in squeaky bum territory if this all kicks off.

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If the recovereh starts to come off the boil, with an absence of earnings from net trade, then either govt. is going to have to increase the deficit again, or the private sector is going to have to re-leverage.

That means they're either going to have to allow the housing boom to keep going, and probably widen/deepen geographically, or else they'll need to find some other patsy to take on private sector debt.

But who this time? Even higher student fees? Something else?

Surely they'll decide the most politically palatable option (for all parties) is another housing boom, but they'll keep their fingers crossed that macro-pru will keep the lid on it turning into another UK wide bubble.

Have my doubts that's even possible.

Sometimes the system as a whole is led to outcomes that are not politically palatable, but are tolerable in comparison to alternatives that are even worse.

Another bubble? Super-bubble 3.0 ? Any more such attemps and the system will wring the life out of all the golden geese.

The alternative is to allow the crash, and get volume lending (credit growth) on houses, to a new era of younger people... millions of private renters and other non-owners. Banks write mortgages to new buyers at £200,000 (house price = £220,000) on home previously thought to be worth £600,000.... and that's £150,800 in interest over 25 years into the system the borrower pays (total repayment £350,800). In huge volume of transactions, shaking out sellers, especially older owners to market and BTL/investor wipe out. Not this ponzi-capitalism we have now that serves VI property-holders to extremes.

Debt is the problem, but it's also the solution. Not this feeble credit growth we have now, only up a little past year on massive Help To Bye-Bye scheme.

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^ At 5% mortgage rate over 25 years.

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