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TheCountOfNowhere

Two Members Of The Bank Of England's Mpc Voted For An Interest Rate Rise In August, Minutes Show

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From the BBC...no link yet:

Two members of the Bank of England's MPC voted for an interest rate rise in August, minutes show

Must be an eleciton coming, we must get those savers to voyte tory,

Edited by TheCountOfNowhere

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Hard to see this as anything other than showing a bit of leg.

+1

if it had been 9 members I would have sat up and taken notice.

The fact the BBC are telling us all whilst also advertising priately owned news papers with house price stories on them means I take it with a pinch of salt.

Here is my pinch of salt:

VietnamSaltMountain.jpg

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From the BBC...no link yet:

Two members of the Bank of England's MPC voted for an interest rate rise in August, minutes show

Must be an eleciton coming, we must get those savers to voyte tory,

It won't make any difference to savings rates. It was 'Funding for Lending', not base rate, that crucified savers.

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I expect they voted for a rise on the understanding that theirs would not be the casting vote which actually led to a rate rise, as has been the case in the past.

And they expect us to take them seriously...

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I expect they voted for a rise on the understanding that theirs would not be the casting vote which actually led to a rate rise, as has been the case in the past.

And they expect us to take them seriously...

I can't understand how this isn't a scandal - "let's all get in a huddle and agree who is going to vote what beforehand, just so we can be absolutely sure of the outcome". Jokers.

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I expect they voted for a rise on the understanding that theirs would not be the casting vote which actually led to a rate rise, as has been the case in the past.

And they expect us to take them seriously...

Can't help but think one didn't want to be singled out so they went for two.

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It won't make any difference to savings rates. It was 'Funding for Lending', not base rate, that crucified savers.

I know that. You know that.

Joe Bloggs who's spanked part/most of their savings on a BTL portfolio and is bemoaning the government for the poor (in their minds) return on their savings need appeasing.

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As reported on HPC in 2011, they probably followed this logic:

DeAnne Julius and Tim Besley said they would support a rate rise were they still on the nine-member Monetary Policy Committee (MPC), so long as the majority verdict was to leave rates unchanged at 0.5pc.

http://www.telegraph.co.uk/finance/personalfinance/interest-rates/8314084/Bank-of-England-urged-to-vote-for-higher-interest-rates-by-ex-MPC-members.html

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3 in 2008 wanted to tighten just as the global wheels came off

3 wanted to tighten for 4 months just as the Euro debt crisis blew up

They appear to be contra-indicators

RBS Economic Insight @RBS_Economics 49s

A short history of dissent at the Bank of England - 2010-11 was the last period of non-unanimous voting pic.twitter.com/F9ZxZEWdpd

BveHwWAIgAABjGy.png
Edited by R K

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It won't make any difference to savings rates. It was 'Funding for Lending', not base rate, that crucified savers.

Yes, but the bulk of boomers with their cash balances compounding below inflation don't understand that though. Probably never heard what funding for lending even was.

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3 in 2008 wanted to tighten just as the global wheels came off

3 wanted to tighten for 4 months just as the Euro debt crisis blew up

They appear to be contra-indicators

RBS Economic Insight ‏@RBS_Economics 49s

A short history of dissent at the Bank of England - 2010-11 was the last period of non-unanimous voting pic.twitter.com/F9ZxZEWdpd

BveHwWAIgAABjGy.png

And last time there was disagreement the doves got proved right.

CPI was >4% at the time but a weak economy collapsed in on itself and we printed zero growth in mid 2012 and CPI fell towards target.

Now the opposite is happening, the economy is "recovering" but there is no inflation.

I think the doves are still "right" (in a neo-classical self destructive kind of way) but for different reasons. There is little price inflation (if you believe the CPI) but massive asset price inflation. The growth we are seeing has been caused by the short term spill over of asset price inflation. Asset markets are relatively tapped out so this growth has now stalled. If they raise rates now we will see an implosion of the economy. WE ARE TRAPPED!

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And last time there was disagreement the doves got proved right.

CPI was >4% at the time but a weak economy collapsed in on itself and we printed zero growth in mid 2012 and CPI fell towards target.

Now the opposite is happening, the economy is "recovering" but there is no inflation.

I think the doves are still "right" (in a neo-classical self destructive kind of way) but for different reasons. There is little price inflation (if you believe the CPI) but massive asset price inflation. The growth we are seeing has been caused by the short term spill over of asset price inflation. Asset markets are relatively tapped out so this growth has now stalled. If they raise rates now we will see an implosion of the economy. WE ARE TRAPPED!

Stronger ££ has probably helped subdue cpi. There's roughly a 6 mth lag in oil price feed through as well, so the current falls are likely to come through in the new year, with the spring/summer rises starting to feed through soon first.

££ looks to be coming off now too, hence cpi looks set to start ticking up (famous last words an all that).

The biggie will be wages - it's pretty clear they want to ensure they remain behind that particular curve. They know it's coming, but they won't admit it until after it's printed, although they may throw in a 1 off rise then just sit there and see what happens next.

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I can't understand how this isn't a scandal - "let's all get in a huddle and agree who is going to vote what beforehand, just so we can be absolutely sure of the outcome". Jokers.

Can you imagine how much of a scandal it would be if the decision were the other way around - ie that the outcome was for a hold or a rise, but that two members voted for a cut but only if it didn't actually happen? The BoE would be finished in a week. It's just another sign of how credit addicted the whole damn population has become.

Can't help but think one didn't want to be singled out so they went for two.

Exactly. So utterly spineless that not only are they willing to cast a contradictory vote only if it doesn't actually result in a rise, but they're too afraid to be the only one doing it. "Go on John, I'll look like a c**t if it's just me. It's not as though anything will actually change, is it?".

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And last time there was disagreement the doves got proved right.

CPI was >4% at the time but a weak economy collapsed in on itself and we printed zero growth in mid 2012 and CPI fell towards target.

Now the opposite is happening, the economy is "recovering" but there is no inflation.

I think the doves are still "right" (in a neo-classical self destructive kind of way) but for different reasons. There is little price inflation (if you believe the CPI) but massive asset price inflation. The growth we are seeing has been caused by the short term spill over of asset price inflation. Asset markets are relatively tapped out so this growth has now stalled. If they raise rates now we will see an implosion of the economy. WE ARE TRAPPED!

We always have been...so what did the government do...set policy to suit the rich and the bankers who caused the problems in the first place.

There will be no recovery until the pain is taken, either a sharp short shock or a long protracted death. The long protracted death means that by the time the UK is in a position to recover it will be so far behind the rest of the world that we will be the poor relation and the rich might have their working class salves again.

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We always have been...so what did the government do...set policy to suit the rich and the bankers who caused the problems in the first place.

There will be no recovery until the pain is taken, either a sharp short shock or a long protracted death. The long protracted death means that by the time the UK is in a position to recover it will be so far behind the rest of the world that we will be the poor relation and the rich might have their working class salves again.

By "always" do you really mean since the financial crisis? If so I agree. However at any point in the early noughties it wasn't too late for economic reform and that was only 10 years ago.

Long protracted death is my base case. But I am not so negative as you on the relative position vs. other counties. If we continue to compare ourselves to Western Europe and the USA we will be just fine on a relative basis. But that is a low bar to cross. If in the future we measure ourselves against places like S.East Asia, Scandinavia or China then we will be disappointed for sure.

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We always have been...so what did the government do...set policy to suit the rich and the bankers who caused the problems in the first place.

There will be no recovery until the pain is taken, either a sharp short shock or a long protracted death. The long protracted death means that by the time the UK is in a position to recover it will be so far behind the rest of the world that we will be the poor relation and the rich might have their working class salves again.

Blue Socialism vs Red Socialism. A mass surveillance state to control and condition every aspect of our waking lives allied with a central bank to control and condition every aspect of our command economy. To describe it as Orwellian doesn't do it justice.

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By "always" do you really mean since the financial crisis? If so I agree. However at any point in the early noughties it wasn't too late for economic reform and that was only 10 years ago.

Long protracted death is my base case. But I am not so negative as you on the relative position vs. other counties. If we continue to compare ourselves to Western Europe and the USA we will be just fine on a relative basis. But that is a low bar to cross. If in the future we measure ourselves against places like S.East Asia, Scandinavia or China then we will be disappointed for sure.

Yes, thats what I mean.

As soon as the banks were de-regulated this was only going to end one way...a lot of economic pain and re-regulation. In the mean time very many of the rich will have helped themselves to a lot of other peoples money.

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