Guest growl Posted January 11, 2006 Report Share Posted January 11, 2006 Just been watching some expert on Sky business and he's saying that there may be a cut soon, but no surprise tommorow. They are expecting a cut in February. I ask then what? It seems to me that they have just been tinkering around the edges for the last two years. A quarter percent rise/fall/hold/rise...on and on and on. All this is doing is prolonging the stagnant housing market that we are in, most parts of the country, apart from the far North. They are just prolonging the misery that we all know is coming, and the longer the drip, drip happens of failing business's the harder the crash will be. Quote Link to post Share on other sites
Guest Fiddlesticks Posted January 11, 2006 Report Share Posted January 11, 2006 It seems to me that they have just been tinkering around the edges for the last two years. A quarter percent rise/fall/hold/rise...on and on and on. All this is doing is prolonging the stagnant housing market that we are in, most parts of the country, apart from the far North. Understandable frustration. However, house prices are not the main consideration when the BoE sets rates, but a "soft landing" is certainly something they would prefer to a HPC. They are just prolonging the misery that we all know is coming, and the longer the drip, drip happens of failing business's the harder the crash will be. These are not sentiments which are widely held outside this website, and there doesn't seem to be any evidence that the members of the MPC share them. Quote Link to post Share on other sites
Justice Posted January 11, 2006 Report Share Posted January 11, 2006 Don’t kid yourselves it all Hangs of inflated house prices as this provides the confidence/excuse people need to borrow so that the economy is propped up by 8% of GDP. House price crash will not just effect builders but every part of the economy and the BoE knows this and that’s why they are bricking themselves just like TTRTR & Co Quote Link to post Share on other sites
Live_in_hope Posted January 11, 2006 Report Share Posted January 11, 2006 Just been watching some expert on Sky business and he's saying that there may be a cut soon, but no surprise tommorow. They are expecting a cut in February. I ask then what? It seems to me that they have just been tinkering around the edges for the last two years. A quarter percent rise/fall/hold/rise...on and on and on. All this is doing is prolonging the stagnant housing market that we are in, most parts of the country, apart from the far North. They are just prolonging the misery that we all know is coming, and the longer the drip, drip happens of failing business's the harder the crash will be. Think it will be a cut tomorrow, with all the recent gloom over xmas, job losses & another cut next month Quote Link to post Share on other sites
Guest Fiddlesticks Posted January 12, 2006 Report Share Posted January 12, 2006 Think it will be a cut tomorrow, with all the recent gloom over xmas, job losses & another cut next month No cut today, but I agree that February will see 0.25 off. Quote Link to post Share on other sites
ryanjw Posted January 13, 2006 Report Share Posted January 13, 2006 What will happen if the interest rate drops in february. Is this bad news for house prices? I was told that interest rates need to go up for house prices to drop. LINK Quote Link to post Share on other sites
Guest Bart of Darkness Posted January 13, 2006 Report Share Posted January 13, 2006 I was told that interest rates need to go up for house prices to drop. Tell that the the Japanese. Quote Link to post Share on other sites
Fancypants Posted January 13, 2006 Report Share Posted January 13, 2006 Tell that the the Japanese. or indeed early 90s UK man... if you can drag him away from his Northside and PWEI albums for long enough. Quote Link to post Share on other sites
frugalista Posted January 13, 2006 Report Share Posted January 13, 2006 or indeed early 90s UK man... if you can drag him away from his Northside and PWEI albums for long enough. frugalista Quote Link to post Share on other sites
Jason Posted January 13, 2006 Report Share Posted January 13, 2006 I think it's still a little uncertain where IRs are heading, I think inflation is getting far higher than reported and the number of people complaining about increasing costs is getting more and more. I'm just deciding whether I should put my cash ISA back into a fixed rate, I don't think I will as I would only get 0.15% more. I also don't think its worth the risk that rates will go down. Oh, and my Dad thinks rates will go up! But he's not an amateur economist like me!!! Quote Link to post Share on other sites
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