Jump to content
House Price Crash Forum
Sign in to follow this  
Realistbear

Boe Expected To Keep Rates At 4.5%

Recommended Posts

http://uk.biz.yahoo.com/060112/214/g10im.html

LONDON (ShareCast) - The Bank (NASDAQ: TBHS - news) of England is expected to keep interest rates at 4.5% as policy makers consider data on economic Advertisement
growth.
The policy making committee is expected to look specifically at any signs of inflationary pressures and consumer spending after the Christmas holiday period.
A report out this week by the British Retail Consortium showed December UK retail sales made their largest year on year rise since May 2004, dampening hopes of an imminent interest rate cut.
Retailers cheered the data, which showed a welcome contrast to December 2004 when like for like sales were down an annual 0.4%.
Governor Mervyn King noted in December that he believes overall growth will pick up in 2006, as consumer spending recovers.
In other economic news the UK's goods trade deficit widened to a record high in November according to the latest report from the Office for National Statistics.

The deficit is the real reason behind the IR policy--look for 5% by summer in line with the Fed.

Share this post


Link to post
Share on other sites

Governor Mervyn King noted in December that he believes overall growth will pick up in 2006

Overall growth in what? Debt is growing (£100bn per year), the money supply is growing (10%) and so is the trade deficit (£bn's per month).

Companies are shutting down and moving their work abroad right, left and centre, a rather drastic move I'd say, why are they doing it? Does the BOE understand the concept of real growth any more and even if it did would it know how to measure or who to get the stats from?

Share this post


Link to post
Share on other sites

Governor Mervyn King noted in December that he believes overall growth will pick up in 2006

Overall growth in what? Debt is growing (£100bn per year), the money supply is growing (10%) and so is the trade deficit (£bn's per month).

Companies are shutting down and moving their work abroad right, left and centre, a rather drastic move I'd say, why are they doing it? Does the BOE understand the concept of real growth any more and even if it did would it know how to measure or who to get the stats from?

he is probably right.

debt will continue to grow and with it the trade deficit etc.

also, growth is being fudged because the inflation deflator is incorrect.

the problem is he has only one target- the fiddled inflation target set by Brown., he is outnumbered by Browns placemen.

he has no mandate to sort out the fiscal deficit, and trade deficit.

that is browns job and he was voted back in last year until possibly 2006.

Share this post


Link to post
Share on other sites

he is probably right.

debt will continue to grow and with it the trade deficit etc.

also, growth is being fudged because the inflation deflator is incorrect.

the problem is he has only one target- the fiddled inflation target set by Brown., he is outnumbered by Browns placemen.

he has no mandate to sort out the fiscal deficit, and trade deficit.

that is browns job and he was voted back in last year until possibly 2006.

He does have though - Financial stability, second remit I believe.

Maybe we will find out more from Andrew Large when he leaves his position (his position in the BOE is in fact in charge of fiscal stability). Why is he leaving early? Too good an offer outside the BOE or something else? |Maybe he will leave with a parting shot as I think this is his last vote.

Edited by OnlyMe

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.