Is Theresa May calling time on low interest rates?

[TheCountOfNowhere]

19 minutes ago, Errol said:

The Term is officially 8 years, but Carney explicitly stated he would step down after 5.

Liek I said...he's not renowned for his forward guidance coming true.

[onlyme2]

48 minutes ago, LC1 said:

I hate myself for being so cynical sometimes, but putting her quotes aside for a moment, what would her motivation be to actually do anything to reverse the inequitable effects of QE and ultra low interest rates? What is her track record in promoting such equitable policies? What are the odds that she's just jibberjabbering to make it sound like she actually gives a flying ****** about it? 

 

Preventing a slide in sterling would be one direct beneficiary. Central banks print money so that other banks and hedge funds can play currency games, print enough and you can destabilise a country through that action. It is the only visible economic negative thus far and it may be largely down to big money playing currency games more than anything else.

 

[rantnrave]

Subtle hint to to the BoE after they had been openly talking about a  further rate cut in Nov?

[Futuroid]

8 minutes ago, onlyme2 said:

 

Preventing a slide in sterling would be one direct beneficiary. Central banks print money so that other banks and hedge funds can play currency games, print enough and you can destabilise a country through that action. It is the only visible economic negative thus far and it may be largely down to big money playing currency games more than anything else.

 

The day interest rates rise, is the day that all those Brexit lovin' home counties voters start giving the Lib Dem posters a second glance.

Imagine if May managed to crash the UK economy before we had even started officially talking about our exit. Not the best negotiating position I imagine!

[billybong]

It's possible that the vote to leave the eu has left them a bit shocked and they realise that the worm is turning.

On the other hand...maybe not.

She's speaking at the conference so she must think that she has their backing on a lot of the stuff she's saying but whether that translates into action is yet another matter.  Dave was always saying great stuff about the economy, powerhouses this powerhouses that, savings and housing/house prices etc etc etc at conference but look where Britain is now on such matters - no further forward that's where and some would say even further back.. 

[“Nasty Piece of work”]

1 hour ago, Futuroid said:

It would not surprise me in the least if May ends the independence of the BoE before Brexit happens.

Sarcasm?  It has never been remotely independent under the Gimp.

[zugzwang]

1 minute ago, billybong said:

It's possible that the vote to leave the eu has left them a bit shocked and they realise that the worm is turning.

On the other hand...maybe not.

She's speaking at the conference so she must think that she has their backing on a lot of the stuff she's saying but whether that translates into action is yet another matter.  Dave was always saying great stuff about the economy, powerhouses this powerhouses that, savings and housing/house prices etc etc etc at conference but look where Britain is now on such matters - no further forward that's where and some would say even further back.. 

Post-truth politics. Just like Gidiot was always banging on about 'fixing the roof'. He should have got a second quote. It's cost a trillion quid already and the job's nowhere near finished.

[Futuroid]

6 minutes ago, Sajid the Taxmeister said:

Sarcasm?  It has never been remotely independent under the Gimp.

I mean interest rates will be set directly by the Chancellor with no pretense to independence.

IIRC, when the BoE was made "independent" it was seen by many as a first step on the road to the Euro - presumably an independent central bank was a prerequisite for joining the Euro.

I think I can say, without fear of contradiction, that the UK will not be joining the Euro any time soon 

[GreenDevil]

So it was Carney all along!

[Fairyland]

To answer the OP 'Is Theresa May calling time on low interest rates?' , I doubt if it is in her capacity now unless of course she doesn't want to prevent a disaster. QE monster is unleashed globally with countries like China and India(cutting rates) going deep into it the possibility of coming out of it is getting less and less. Just waiting(avoiding) to see how it all ends.

 

 

[frederico]

Yeah, its all very well, but actions speak louder than words. In the mean time the left are getting all frothy over racism ,

[rantnrave]

Government expected to announce shift away from quantitative easing

A major shift in economic policy away from quantitative easing is expected to be announced in this year's Autumn Statement, according to reports. 

Theresa May is said to be backing a break away from the monetary policy pursued by George Osborne and a move towards more fiscal measures, such as tax and spending.

George Freeman, the Conservative MP who chairs the No 10 policy board, confirmed that the change would be announced in next month’s Autumn Statement.

Speaking last night to BBC Newsnight he suggested the policy could be unveiled by the Chancellor Philip Hammond as early as the Autumn Statement.

It comes after Mrs May criticised the "bad side effects" of quantitative easing during her speech to the Tory Party conference.

Mr Freeman told Newsnight: "Philip Hammond is going to set this out in the Autumn Statement, but Theresa has been very clear this model of the emergency QE package, bail out the banks, stabilise the economy, has had a very profound effect on distribution of wealth.

"Those with assets have done very much better than those without. We have to listen to the roar that we heard this year." (my emphasis)

Mr Freeman said the Government was "looking at all the mechanisms to make sure money flows properly", in order to develop infrastructure and its industrial strategy.

Quantitative easing, which introduces new money into the money supply through a central bank, was done in the wake of the 2008 financial crisis.

Mr Freeman added: "We are asking the question.If we're going to build a model of economic growth that's more urgent, creates more opportunities, creates for people hope that through this pain of getting out of this debt crisis there is growth and sustainable growth for tomorrow, and that the people and places that have been left behind can see infrastructure and opportunity.

"She's signalling loud and clear that we need to make sure we understand what effect this model of growth has had on those that are paying for it."

Monetary policy is set by the Bank of England, which is independent of government.

Yesterday Mrs May told an audience in Birmingham that a change in economic direction had “got to come”.

She said: “While monetary policy – with super-low interest rates and quantitative easing – provided the necessary emergency medicine after the financial crash, we have to acknowledge there have been some bad side effects.

“People with assets have got richer. People without them have suffered. People with mortgages have found their debts cheaper. People with savings have found themselves poorer.”

http://www.telegraph.co.uk/news/2016/10/06/government-expected-to-announce-major-shift-in-economic-policy/

[winkie]

Imported goods to assist in inflating prices..... inflationary factors will see interest rates rise....money will still be falling in value because far too much of it been created via never to be repaid debt.

[copydude]

It was the Chancellor's decision to quit the ERM and any effort to join the Euro. I don't think anyone has any regrets over that one. The banks have their own agendas.

It is quite interesting that Osborne is coming in for a lot of stick from Conservatives . . . but only now. On housing policy and 'Help To Buy' as well. Better late than never I suppose.

[LiveinHope]

21 minutes ago, copydude said:

It was the Chancellor's decision to quit the ERM and any effort to join the Euro. I don't think anyone has any regrets over that one. The banks have their own agendas.

It is quite interesting that Osborne is coming in for a lot of stick from Conservatives . . . but only now. On housing policy and 'Help To Buy' as well. Better late than never I suppose.

Perhaps they decided to stick together to win the chance of a second term. It could be very well managed by a particular wing of the party. For example, I am convinced that May was pro Brexit but kept her powder dry.

I think May's personality is the type that will never express their personal opinion, one where you will never know what the person thinks until the moment they speak or act. She follows the mantra that Quiet mice eat the most cheese.

May gave a very interesting interview on the R4 Today programme this week in which she elegantly parried every question with an answer that said nothing, which you could say was usual for politicans, but May executed it very elegantly indeed.

Edited October 6, 2016 by LiveinHope

[londislagerhound]

Absolutely no chance. These people look after themselves, always have done, always will.

The only thing I can recall in my 52 years which government did that I think has had any real benefit to me is the smoking ban.

[Si1]

It's being called the end of liberalism. The parasite has been recognised for what it and the host is saying it has to go.

[Si1]

Or in other words when someone like James Dellingpole calls out Osborne's policies as socialism for banks, you know Osborne ceased being a conservative some time ago.

[Will!]

3 hours ago, LiveinHope said:

...I am convinced that May was pro Brexit but kept her powder dry.

I think May's personality is the type that will never express their personal opinion, one where you will never know what the person thinks until the moment they speak or act. She follows the mantra that Quiet mice eat the most cheese.

May gave a very interesting interview on the R4 Today programme this week in which she elegantly parried every question with an answer that said nothing, which you could say was usual for politicans, but May executed it very elegantly indeed.

 

2 hours ago, Grumpysod said:

I got the sense that Teresa May could well be the type of conviction politician this country so badly needs right now, unlike pretty boy  David Cameron who walked away with a zero legacy and a bucket load of empty promises. May seems to be inching towards being just yet another all things to all men/woman type of politician. Still early days and you never know, but like any conviction politician you are going to be hated and despised by some people at the that moment in time for big changes that need to take place and hopefully praised in the future for doing or at last trying to do the right thing.

 

There seems to be a concerted effort by someone (presumably May's PR team) to portray her as a particularly tough-minded, decisive and capable individual.  Nothing about her tenure as Home Secretary suggests this.  Being "bloody difficult" (as per Ken Clarke) is not the same as leadership.

[scepticus]

20 hours ago, hotairmail said:

I think it's called "open mouth operations".

 

very good

[LiveinHope]

38 minutes ago, Will! said:

 

 

There seems to be a concerted effort by someone (presumably May's PR team) to portray her as a particularly tough-minded, decisive and capable individual.  Nothing about her tenure as Home Secretary suggests this.  Being "bloody difficult" (as per Ken Clarke) is not the same as leadership.

being bloody difficult could just mean 'not agreeing with Ken Clarke', perhaps a euro-skeptic ?

[Bear Goggles]

In answer to the original question - will it happen? Well, the rhetoric has most definitely changed, but the cynic in me says: Talk is cheap, and as others have already said, we've heard plenty of empty promises from politicians, why would they change now? Not long to the autumn statement, so I guess we'll find out soon enough.

However, you could read this in another way. The rise of a left wing labour movement that isn't afraid to use the word socialism, and a massive revolt by  so-called "ordinary working people" against the perceived Westminster elite in the EU ref should be ringing massive alarm bells for the Tories. If there's one thing the right are good at (and the left are rubbish at) then it's class loyalty. The rabble are rousing, and the Conservatives need to make sure they're right side of the fence if the bricks start flying. That clearly means throwing free-market libertarian rhetoric out of the window, as it's just antagonising people, and taking a more interventionist approach. But actions require conviction, and it remains to be seen whether any will materialise.

This whole business is quite amusing when I think of the libertarian Brexit cheerleaders like Dan Hannan, Douglas Carswell, Liam Fox, and to a certain extent Boris Johnson, whose whole raison d'être was to lead Britain out of a supposedly socialist EU and into a new romantic free-market libertarian utopia. I think they really believed that is what ordinary people had voted for, but it looks like they have in fact ushered in a new era of protectionism and interventionism, and the Tory party - now talking about industrial strategies and calling time on corporate tax avoiders - is now sounding decidedly more leftwing than New Labour. A pariah's victory indeed.

 

[Crumbless]

16 minutes ago, Bear Goggles said:

. but it looks like they have in fact ushered in a new era of protectionism and interventionism, and the Tory party - now talking about industrial strategies and calling time on corporate tax avoiders - is now sounding decidedly more leftwing than New Labour. A pariah's victory indeed.

 

This is what they have in Asia, the plebs just want a level playing field.

I'm now starting to believe something is in the air. Since the BoE got independence they've shown a whole new level of incompetence to which politicians are taking the flack, maybe some of this freedom is to be taken away.

Though some seem to want to ignore the failings of banker serving BOE
 http://www.telegraph.co.uk/news/2016/10/06/yes-quantitative-easing-should-end-but-the-bank-of-england-shoul/

[copydude]

The speech certainly suggested interventionism. Actually, freed of the EU, the Government can do what it likes to subsidise industry, infrastructure or whatever . . . award contracts to British firms . . . or give them more favourable status here than foreign firms. There are opportunities.

[Bear Goggles]

8 minutes ago, Crumbless said:

This is what they have in Asia, the plebs just want a level playing field.

I'm now starting to believe something is in the air. Since the BoE got independence they've shown a whole new level of incompetence to which politicians are taking the flack, maybe some of this freedom is to be taken away.

Though some seem to want to ignore the failings of banker serving BOE
 http://www.telegraph.co.uk/news/2016/10/06/yes-quantitative-easing-should-end-but-the-bank-of-england-shoul/

Yes. The "independence" of the BOE has always been a bit of a moot point.

That Telegraph headline is hilarious. It could still be the bank's decision, Carney could sign a document saying "Straight up, it was my decision Guv'nor - signed The Governor" That would be convincing wouldn't it?