Jump to content
House Price Crash Forum
lostinessex

Time to Raise Interest Rates

Recommended Posts

OK confusingly the strap line for this article suggests that interest rates should be lowered - but I think that's a foul-up by the sub-editor because the article is actually suggesting that the way to solve the country's savings crisis is to raise interest rates.

http://www.independent.co.uk/voices/economy-savings-gdp-mortgages-pensions-a7818666.html#commentsDiv

Share this post


Link to post
Share on other sites

Some conservative on the news saying they can't raise public pay cap as 'it would lead to the Bank of England having to raise interest rates and they are running out of reasons not to raise' 

Share this post


Link to post
Share on other sites

Boe problems started under Steady Eddie. Since then each governor has kicked the can down the road.

Volker took on the establishment and sorted things long term. There is no central banker alive who would do that now as they are all from the establishment.

 

There will be no meaningful intervention until peolple rise up.

Share this post


Link to post
Share on other sites
3 minutes ago, jiltedjen said:

Some conservative on the news saying they can't raise public pay cap as 'it would lead to the Bank of England having to raise interest rates and they are running out of reasons not to raise' 

Ideally prices should be going down or leveling out, rents, homes, food, fuel and taxes.......but rising wages bring with it even higher inflation, that will bring with it higher debt costs.....they wanted and engineered higher house prices, didn't have to, therefore will have to pay the cost of higher living costs and crashing the pound further causing ever higher prices, vicious circle......so any rise in wage will be swallowed up in higher interest and living costs......;)

Share this post


Link to post
Share on other sites
1 minute ago, maverick73 said:

I vote for a salary haircut. Deduct 6% from public sector salaries over £60,000 pa and give that to those earning under £30,000... 

Much sense in that......to be honest those earning less than £30,000 in the eyes of the public work harder and longer than those who are rarely are able to justify their income....just because they can does not mean just because it is right.;)

Share this post


Link to post
Share on other sites
28 minutes ago, fru-gal said:

https://www.bloomberg.com/news/articles/2017-07-05/boe-s-saunders-warns-of-first-u-k-rate-increase-in-a-decade

Surprised that interest rates haven't risen yet, considering the banks want higher rates as do the pension and insurance industries.

Alas, the UK economy is still as sick as a dog. The sick man of Europe, in fact.

Someone should tell the Canadian dummy.

https://www.yahoo.com/news/optimism-ebbs-among-uk-services-firms-growth-slows-083434452--finance.html

Quote

LONDON (Reuters) - Britain's economy is likely to lose momentum in the second half of 2017, according to a closely watched survey that could disappoint some Bank of England officials who want to raise interest rates for the first time in a decade.

Sterling dipped after Wednesday's Markit/CIPS survey showed growth across British services companies fell to a four-month low in June.

Although the survey suggested the economy recovered some speed in the second quarter and probably expanded at a quarterly pace of around 0.4 percent, double the pace of the weak first quarter, there were some ominous signals in the PMI's forward-looking gauges.

Business expectations sank to their weakest level since last July's dip after the vote to leave the European Union, and it was not far off lows last reached in late 2011. Growth in new orders hit a nine-month low.

The headline index edged down to a four-month low of 53.4 in June from 53.8 in May, just shy of a forecast for 53.5 in a Reuters poll of economists.

On Tuesday BoE rate-setter Michael Saunders said he was "reasonably confident" that lower consumer spending will be offset by higher exports and investment, justifying his vote to raise interest rates from a record low 0.25 percent.

"But the latest PMI survey pours some cold water on that hypothesis," said JPMorgan economist Allan Monks.

"Indeed, it is worth highlighting that the weakness in the UK PMI comes at a time when the broader European PMIs have strengthened considerably."

The mood among services firms was probably hit by uncertainty after June's election, in which Prime Minister Theresa May gambled away her parliamentary majority, and by Brexit talks, as well as the economic outlook, IHS Markit said.

A third monthly drop in car sales in June -- albeit from recent record highs -- underlined the slowdown among consumers.

Separate official data showed productivity, arguably Britain's biggest economic problem over the last decade, fell in the first three months of the year -- the first decline since late 2015.

 

Share this post


Link to post
Share on other sites
On 7/3/2017 at 8:37 PM, winkie said:

Much sense in that......to be honest those earning less than £30,000 in the eyes of the public work harder and longer than those who are rarely are able to justify their income....just because they can does not mean just because it is right.;)

This is the number 1 problem in the UK.The £25k jobs have gone replaced by £14k and £40k+.The £14k jobs get split in two and people claim tax credits instead.Thats what happens when everyone has an industrial policy accept the UK.All planned of course by the elite.

Share this post


Link to post
Share on other sites
On 03/07/2017 at 8:33 PM, maverick73 said:

I vote for a salary haircut. Deduct 6% from public sector salaries over £60,000 pa and give that to those earning under £30,000... 

Bloo Loo, I think, suggested setting a pivot point of £25k, and for everyone earning more, make their new pay the average of their current salary and £25k.

I think that was in the context of requiring radical surgey to cut down the expenditure in the public sector. It would certainly require extraordinary circumstances, of the same magnitude as a war, to get any momentum behind that idea, since it affects the decision makers first and foremost; and the more influential ones to a greater extent than the less.

DB's point about tax credits is very good too: they have created some crazy mis-incentives.

Share this post


Link to post
Share on other sites
On 7/3/2017 at 6:09 PM, thisisthisitmaybe said:

Boe problems started under Steady Eddie. Since then each governor has kicked the can down the road.

Volker took on the establishment and sorted things long term. There is no central banker alive who would do that now as they are all from the establishment.

 

There will be no meaningful intervention until peolple rise up.

Which people?

Low rates mean lots of people are living a lifestyle they cannot really afford under normal historic rates. The only thing people in the UK would rise up about, is if lending multiples for mortgages were reduced. 

Share this post


Link to post
Share on other sites
On 7/3/2017 at 8:33 PM, maverick73 said:

I vote for a salary haircut. Deduct 6% from public sector salaries over £60,000 pa and give that to those earning under £30,000... 

We printed money instead of cutting public sector wages. 

Share this post


Link to post
Share on other sites

Will there be a decision on interest rates tomorrow? It's usually on the first Thursday of each month. :unsure:

Oddly, I went to the BoE website a few days ago (courtesy of a link provided by Bruce Manner on another thread) and it stated that the next decision will be in early August. :unsure:

Edited by MattW
sloppy grammar

Share this post


Link to post
Share on other sites
17 minutes ago, MattW said:

Will there be a decision on interest rates tomorrow? It's usually on the first Thursday of each month. :unsure:

Oddly, I went to the BoE website a few days ago (courtesy of a link provided by Bruce Manner on another thread) and it stated that the next decision will be in early August. :unsure:

 

Quote

Following changes announced in the Bank of England and Financial Services Act 2016, MPC meetings will now take place eight times a year instead of once a month.

http://www.bankofengland.co.uk/publications/Pages/news/2016/070.aspx

Makes sense what with economic landscape being so quiet and all :rolleyes:

Share this post


Link to post
Share on other sites
5 hours ago, MattW said:

Thanks for the link, afly. :)

So next decision on 3rd August + inflation report publication.

It's holiday month, they are off to butlins ?

Share this post


Link to post
Share on other sites
7 hours ago, durhamborn said:

This is the number 1 problem in the UK.The £25k jobs have gone replaced by £14k and £40k+.The £14k jobs get split in two and people claim tax credits instead.Thats what happens when everyone has an industrial policy accept the UK.All planned of course by the elite.

Also the majority of 60+ year olds who had high wage inflation over the years who can't afford to retire paradox.

Share this post


Link to post
Share on other sites
Just now, satch said:

Or you could reduce the salaries of all those paid more than the PM to that of the PM .... but of course if that happened then these public servants would all leave ..... oh wait I might be on to something here!

Friends a nurse. She pulls in 35k in the North. Clears her hours with 3 x 12h shufts. Sge does work a couple of nights  fortnight.

She does whinge about the 1% icrease. However, she does admit if she left nursing shed by down to 25k max, doing 5 x 10h shift at a carehome. And be worked a lot harder.

Failing tht it would be a shop at 12k.

Share this post


Link to post
Share on other sites
8 minutes ago, spyguy said:

Friends a nurse. She pulls in 35k in the North. Clears her hours with 3 x 12h shufts. Sge does work a couple of nights  fortnight.

She does whinge about the 1% icrease. However, she does admit if she left nursing shed by down to 25k max, doing 5 x 10h shift at a carehome. And be worked a lot harder.

Failing tht it would be a shop at 12k.

Well, with the EU exit and the decline in NHS workers, they will increase the salaries of those who stay along with the temp nurses. 

Share this post


Link to post
Share on other sites
On 03/07/2017 at 8:33 PM, maverick73 said:

I vote for a salary haircut. Deduct 6% from public sector salaries over £60,000 pa and give that to those earning under £30,000... 

Why stop at 6%, easier numbers if you just take 10%.  Soften the blow with a 5% pension addition - why? everyone knows they aint gonna pay out on those generious pensions so it makes little diff in the present, now

Share this post


Link to post
Share on other sites
31 minutes ago, giggler000 said:

Why stop at 6%, easier numbers if you just take 10%.  Soften the blow with a 5% pension addition - why? everyone knows they aint gonna pay out on those generious pensions so it makes little diff in the present, now

The government promotes equality... actions speak louder than words.... ?

Share this post


Link to post
Share on other sites

Ban agency staff, 1 days pay to a agency doctor is almost a months wage for 1 nurse, its crazy.. Most of the agency staff are ex NHS staff who have left and come back on 3x the wages.. Ban agency staff and employ them back directly but with higher wages and slightly more realistic pensions. There should be no need for agency really, If you are a factory and get a big order, agency staff till order ends then send them on their way. But in the NHS.. why? a well staffed hospital should not need them. Also no tuition fees for training NHS staff with a loyalty contract that they remain employed for 10 years (stop the little tykes running off to Australia) otherwise have to pay for the education they received compliments of the tax payer.. 

 

 

Share this post


Link to post
Share on other sites
29 minutes ago, macca13 said:

Ban agency staff, 1 days pay to a agency doctor is almost a months wage for 1 nurse, its crazy.. Most of the agency staff are ex NHS staff who have left and come back on 3x the wages.. Ban agency staff and employ them back directly but with higher wages and slightly more realistic pensions.

A lot of NHS trusts have already done that by setting up preferred arrangements with Employment agencies at a fixed lowish rate and refusing to employ any temps through anyone else.

It's an approach that works up to a point, until it doesnt, which I think may be soon. The NHS near me are haemorrhaging staff right now.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

  • Recently Browsing   0 members

    No registered users viewing this page.

  • Next General Election   92 members have voted

    1. 1. When do you predict the next general election will be held?


      • 2019
      • 2020
      • 2021
      • 2022

    Please sign in or register to vote in this poll. View topic


×

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.