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US raises key interest rate by 0.25% - merged


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2 minutes ago, rollover said:

Bank of England have to follow soon.

There is going to be quite a gap between us and america now in real terms interest rates.
I would like to think the BOE would raise, but they know full well the crash has started, and to raise rates now would really add a lot of fire to it

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1 minute ago, jiltedjen said:

There is going to be quite a gap between us and america now in real terms interest rates.
I would like to think the BOE would raise, but they know full well the crash has started, and to raise rates now would really add a lot of fire to it

Would BOE be forced to raise at some point if say the fed raised to over 1%? 

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4 minutes ago, kidgorgeous said:

Why? ( I really hope you are right!)

“The Fed will raise rates soon and Carney is facing 180 degrees in the wrong direction,” Buxton said. “Carney won’t want the interest rate differential between the US and UK to be too great otherwise it will put more pressure on sterling. “He may have to raise rates as the economy deteriorates.” but “It won’t be enough to cause a housing market collapse,” he said. mortgagesolutions

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The key will be the £-$ exchange rate.... BOE won't act unless Sterling starts tanking. Dollar should gain ground as by raising rates the fed are signalling they are trying to head off an over heating economy... For investors and money markets an over heating economy is an opportunity to make money....

 

Watch the rates in the morning....

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1 minute ago, rollover said:

“The Fed will raise rates soon and Carney is facing 180 degrees in the wrong direction,” Buxton said. “Carney won’t want the interest rate differential between the US and UK to be too great otherwise it will put more pressure on sterling. “He may have to raise rates as the economy deteriorates.” but “It won’t be enough to cause a housing market collapse,” he said. mortgagesolutions

i get what you are saying but  does Carney care if sterling comes under pressure? Does he care if inflation was over 5%?. 

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This is one of those days you really don't want to be long £ overnight.

“He may have to raise rates as the economy deteriorates.” but “It won’t be enough to cause a housing market collapse,"

Well, that may be, because it may have already started. The evidence is mounting. I do know a couple of personal accounts that nothing is selling down there atm.

Inflation up, a HPC on the cards, personal debt high, savings low (the flight to risk has already happened)... and we start 2017 with 0.25%. Not looking good for UK plc. Where will Carney the magician go to next after he's destroyed the £?

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