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Patfig

Interest Rate About To Rise?

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It will rise by 0.01% Oh the horror! Then they will drop by 0.01% Oh thank you my masters! You are so great. I shall worship and genuflect oh great ones.

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"You can't taper a ponzi"

BOE needs to appear to raise rates for a few of reasons

1) As the poster above pointed out so they can lower them again for 'stimulus'

2) To give the BOW a thin veneer of authority

3) It makes 'The Recovery' look more realistic.

Over the long term rates cannot be raised as it increases government borrowing [taxes] and mortgages payments which in turn will lead to a recession.

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Can the govt afford it with the current deficit spending?

Maybve they can borrow more to cover it.

:lol::lol::lol::lol::blink:

As I've said before, tighter money makes no sense whatsoever while Osborne is borrowing £120bn/yr to hold up the economy and directly subsidising the housing market. It's empty talk.

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As I've said before, tighter money makes no sense whatsoever while Osborne is borrowing £120bn/yr to hold up the economy and directly subsidising the housing market. It's empty talk.

Maybe we've got to the point when they can't support the housing pyramid...aka all their mates have sold their houses.

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Anyone have a source?

There is nothing online about this (using google news search and checking the bbc uk news section).

It was actually on the news this morning not sure if you can get it on bbc player?

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According to BBC Breakfast this morning the members of the BOE will vote on whether they *think* interest rates should rise. That doesn't mean they are going to do anything. This has gone past doing my head in now.

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This has gone past doing my head in now.

Dunno why....interest rates are going nowhere. We're more likely to see an all out collapse first if you ask me.

They are making pre-election noises to try and keep the savers happy IMO.

Forget it, find a better home for your savings.

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"You can't taper a ponzi"

BOE needs to appear to raise rates for a few of reasons

1) As the poster above pointed out so they can lower them again for 'stimulus'

2) To give the BOW a thin veneer of authority

3) It makes 'The Recovery' look more realistic.

Exactly right - the government is the biggest borrower. Increasing rates will simply mean they may more of their tax revenue as interest and make government borrow even more.

For all the talk of austerity little has been done to reduce government spending except ideological rants.

Swap rates have actually gone down of late after the markets realised Carney's little game. And mortgages are again being repriced downwards according to themortagemeter.com. Ultimately rates will be decided by the markets and the central banks will struggle to re-assert their authority if they lose it even once.

We can see that Japan is in the first throws out outright collapse as an ageing population connects with lowering imports, currency losses, higher energy prices and tensions with China.

Our "overlords" realise that what the world needs now is a war to stimulate demand, move blame away from those in charge and reduce the population a bit. Its not all doom and gloom - technology has changed the masses' ability to respond and communicate and nuclear weapons have certainly made all out war difficult. This war will be economic and proxy in nature as allies will increasingly huddle together to form unions of their own. This is why Russia's gas and oil gives them a big plus until the US go online with fracking exports. Until then Russia are the masters and Obama seems like a bitt of a redundant puppet master. The press will increasingly find a "big bad enemy" for us all to "hate" and forget about our troubles.

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Yes they are about to rise, next year or maybe in five years.

Its the very last thing that Carney will do before he heads back to Canada.

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As I have said before. I think they should increase them o.1% at a time with a central view to hit 1% in 10 months time. This could be shortened to 5 months or extended to 15 months.

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...

Swap rates have actually gone down of late after the markets realised Carney's little game. And mortgages are again being repriced downwards according to themortagemeter.com. Ultimately rates will be decided by the markets and the central banks will struggle to re-assert their authority if they lose it even once.

...

I think you're jumping the gun on that call, and I think that the effect of a little fall in the swap rates might be swamped by the end of FLS (for owner-occupiers). Time will tell.

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I would think most of their mates have gone liquid and also shorted the stockmarkets.They wont like having to pay for equities on such low yields.They will want to bring down those stockmarkets id think

The government only needs a few more months of high deficit spending.It will suit them greatly to have to slash spending next June after the election.If they win they have the excuse to slash and sell off state assets.If they lose Labour last 6 months in office as everything tanks.

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