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Bank Of England Voted 8-1 To Leave Key Rate Unchanged Jan. 12

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Bank of England Voted 8-1 to Leave Key Rate Unchanged Jan. 12

Bloomberg link.

`

Inflation would fall below its target once the impact of higher oil prices had dropped out of the annual consumer-price inflation rate, he argued.

Why would 20% rises in energy prices not have an impact on inflation? Does he know something we don't?

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but one voted to lower......

Hmm...I would have preferred 9-0 - actually I'd have preferred 9-0 in favour of a rise of 2%, but that's one of my wetter dreams - but the overall tone of the minutes is very cautious. Nickell's broken ranks before. The rest are waiting to see what oil and the pound do.

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Bank of England Voted 8-1 to Leave Key Rate Unchanged Jan. 12

Bloomberg link.

Why would 20% rises in energy prices not have an impact on inflation? Does he know something we don't?

The point is not that fuel price rises won't have an effect on inflation, it is that they have already had their effect, and they won't have much more unless there are further rises. But late rin the year when the rises drop out of the year-on-year figures, the annual rate of inflation will decrease sharply as the fuel price rises will have dropped out altogether.

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The Minutes

The_Minutes.pdf

Here's a good quotation for the bears:

11 The fourth possibility was that the high real interest rates observed in the last two decades of the

20th Century may have been the unusual period. This might explain why current long-term interest

rates had moved closer into line with the levels observed in some earlier periods of history. If this

explanation were correct, it was possible that the current low level of long-term interest rates might be

sustained for some while to come.

Remember, interest rates are at their historic norms, or a bit above, if you look far enough back in history.

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The point is not that fuel price rises won't have an effect on inflation, it is that they have already had their effect, and they won't have much more unless there are further rises. But late rin the year when the rises drop out of the year-on-year figures, the annual rate of inflation will decrease sharply as the fuel price rises will have dropped out altogether.

Errr, no, not if they stay as they are at the moment - inflation will rise.

Each month they are this high, annually it goes up, even when the September figures drop out, it will still be increasing as months of high oil prices, Jan, Feb, etc replace months of relatively lower prices from last year.

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Guest Charlie The Tramp

Remember, interest rates are at their historic norms, or a bit above, if you look far enough back in history.

Back as far as 1694 then. ;)

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Remember, interest rates are at their historic norms, or a bit above, if you look far enough back in history.

Look far enough back in history and you won't find banks printing money like there is no tomorrow to gloss over their own economic incompetence.

The central bankers know damn well what is going on - it is all a game of spin.

Edited by OnlyMe

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The point is not that fuel price rises won't have an effect on inflation, it is that they have already had their effect

No. The longer the current level of high fuel prices remains, the higher the likelihood of secondary price effects.

For most businesses, fuel is an essential, significant and unavoidable input cost. As long as high fuel prices are a temporary phenomenon, you can absorb this cost without passing it on to your customers. However, if high input costs are sustained, you will eventually have to pass them on to your customers and they will in turn have to pass them on to theirs.

Edited by doogie

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Remember, interest rates are at their historic norms, or a bit above, if you look far enough back in history.

So, we can look forward to shoving kids up chimneys, serfdom and debtors prison.

Sounds great! :(

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Remember, interest rates are at their historic norms, or a bit above, if you look far enough back in history.

Do remember, that historically, electricity and cars aren't normal if you compare back to the 17th century!!

To quote that far back to historic norms just isn't accurate for todays lifestyles.

Edit: I must get my centuries correct :D

Edited by OzzMosiz

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Guest Charlie The Tramp

Do remember, that historically, electricity and cars aren't normal if you compare back to the 15th century!!

To quote that far back to historic norms just isn't accurate for todays lifestyles.

I agree, today the historic norms must be taken from 1960 when the winds of change both economically and politically began. <_<

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Theres a surprise, the only one to vote for a cut is one of Browns puppets.

If you're suggesting that some of the members are there because of Brown and others are not, then you're very badly informed. ALL the members are, effectively, appointed by the Chancellor.

Just a litle bit of research would have made you a lot more knowledgeable.

p

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Didn't this lot all vote 9-0 to leave rates on hold one month then 9-0 for a cut the next when rates fell last time? They seem to just do what the general press are baying for at the time, which is a cut in Feb unfortuantely.

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Didn't this lot all vote 9-0 to leave rates on hold one month then 9-0 for a cut the next when rates fell last time? They seem to just do what the general press are baying for at the time, which is a cut in Feb unfortuantely.

Not quiet, I believe 5 voted for a cut and 4 for a hold last time rates were dropped.

The governor was one to vote for a hold!

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Maybe it was when rates went up then. The voted 9-0 for several months in a row when rates went up or stayed the same, so them all voting 9-0 doesn't mean a thing.

Edited by simon99

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Maybe it was when rates went up then. The voted 9-0 for several months in a row when rates went up or stayed the same, so them all voting 9-0 doesn't mean a thing.

For the last rate rise, brown had 5 cronies to vote on his behalf, next time he will have 6.

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patprimer74

You knob

9 MPC members - 5 are BoE employees 4 are appointed by Brown Nickell is one of his.

Wrong, again!

Who d'you think appoints those you call 'BoE employees'? See below:

http://www.bankofengland.co.uk/monetarypolicy/overview.htm

The Bank's Monetary Policy Committee (MPC) is made up of nine members – the Governor, the two Deputy Governors, the Bank's Chief Economist, the Executive Director for Markets and four external members appointed directly by the Chancellor.

NOTE THE EXPLICITLY STATED 'DIRECTLY'.

http://www.bankofengland.co.uk/about/governance/index.htm

Court consists of the Governor, two Deputy Governors and 16 Directors. The Directors are all non-executive. The Governors are appointed by the Crown for five years and the Directors for three years.

For 'Crown' read 'Chancellor of the Exchequer'. Much as you may dislike the idea, the whole of the committee are in their jobs, one way or another, thanks to your friend Gordon Brown. In my view, they're all just as independent as one another.

Get your facts straight before you descend to name-calling. Stick around, you might learn something on this board. In EA speak, you 'have great potential'!

p

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Didn't this lot all vote 9-0 to leave rates on hold one month then 9-0 for a cut the next when rates fell last time? They seem to just do what the general press are baying for at the time, which is a cut in Feb unfortuantely.

No, 27 of 32 economists polled by Bloomberg expect rates to be held in Feb. The MPC rarely does anything unexpected.

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"For 'Crown' read 'Chancellor of the Exchequer'."

Excuse my ignorance but what exactly does the 'Crown' consist of?

OK Crown the Queen.

Lets be honest she doesnt pick the team at BoE but someone advises her

Who is that ?

The current Government?

Some of the Lords?

Advisers?

Come some of you educated types help me out here

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"For 'Crown' read 'Chancellor of the Exchequer'."

Excuse my ignorance but what exactly does the 'Crown' consist of?

[/quote/]

You could be starting a Constitutional debate here!

Ever wonder why you are officially a "subject" rather than, as in the USA, a "citizen"?

Why if you commit a crime it's the Crown Prosecution Service that will prosecute in the name of the Crown?

Why the Queen "asks" the Leader of the winning Political Party to form a Government?

All is in the name of the Crown, or the Monarch if you prefer.

Funny old system we have.

Just think of yourself as a Commoner, unless you have a title of course!

Clue, Lords and Commons.

Edited by Mushroom

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  • 336 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% +
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      • Even
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