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mathschoc

BOE Michael Saunders urges higher rates

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http://www.bbc.co.uk/news/amp/business-41106201

A key member of the Bank of England's interest rate-setting Monetary Policy Committee (MPC), Michael Saunders, has said "a modest rise" in interest rates is needed to curb high inflation. 

In a speech in Cardiff, he said it would "help ensure a sustainable return of inflation to target over time".

Mr Saunders said the Brexit process "might be bumpy".

However, he added that the Bank "should not maintain an overly loose stance as insurance against this scenario". 

"Rather, we should be prepared to respond as needed if it happens."

Mr Saunders , formerly the head of European economics at the US-based bank Citigroup, has been one of the nine MPC members since August last year.

Like his predecessor Martin Weale, he has often favoured higher interest rates.

Terms 'have shifted'

In his speech, Mr Saunders said: "We do not need to be putting the brakes on so much that the economy weakens sharply.

"But our foot no longer needs to be quite so firmly on the accelerator.

"In the exceptional circumstances since the EU referendum, the MPC has sought the appropriate trade-off between above-target inflation and below-potential output," he said.

"The terms of that trade-off have shifted markedly in recent quarters. Inflation has risen well above target, while spare capacity in the economy has been absorbed faster than expected.

 

Yawnnnnn, I will believe it when I see it

 

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They should have had "a modest rise"  years ago. Now we are stuck with a debt fueled economy from cheap money, which will see even worse impacts to a "modest rise" than before.

 

We should have been in better shape by now after the GFC, but we are in a much worse situation. For me, that is criminal... but they still keep doing more of the same.

 

Thoroughout the years, I have found that they may talk about the right things, but it is what they do that matters.

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Agree with all the above 'Talk is cheap'...the problem is I think the markets may get so used to this rhetoric (especially that from 'The Unreliable Boyfriend') that they will just start to ignore it.

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I think just about every post on this thread has nailed it, and cannot help but  think this is yet another controlled  contrived statement where Carney is more responsible than Saunders, because they just have to give the impression that they are not just a one dimensional group of vegtables whose only solution is debt and spend and b****x to the inevitable car crash at the end.

Every day Carney goes deeper into the territory of no return, Opps sorry, no he went All In to use a poker analogy years ago. That man gives more importance to his reputation than the suffering he will cause for 60 million people eventually, and the only person he answers to is the Banks.

Edited by Guest

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3 hours ago, mathschoc said:

http://www.bbc.co.uk/news/amp/business-41106201

A key member of the Bank of England's interest rate-setting Monetary Policy Committee (MPC), Michael Saunders, has said "a modest rise" in interest rates is needed to curb high inflation. 

In a speech in Cardiff, he said it would "help ensure a sustainable return of inflation to target over time".

Mr Saunders said the Brexit process "might be bumpy".

However, he added that the Bank "should not maintain an overly loose stance as insurance against this scenario". 

"Rather, we should be prepared to respond as needed if it happens."

Mr Saunders , formerly the head of European economics at the US-based bank Citigroup, has been one of the nine MPC members since August last year.

Like his predecessor Martin Weale, he has often favoured higher interest rates.

Terms 'have shifted'

In his speech, Mr Saunders said: "We do not need to be putting the brakes on so much that the economy weakens sharply.

"But our foot no longer needs to be quite so firmly on the accelerator.

"In the exceptional circumstances since the EU referendum, the MPC has sought the appropriate trade-off between above-target inflation and below-potential output," he said.

"The terms of that trade-off have shifted markedly in recent quarters. Inflation has risen well above target, while spare capacity in the economy has been absorbed faster than expected.

 

Yawnnnnn, I will believe it when I see it

 

+1. How many times do they think people will fail for their b******t? The boy who cried wolf, indeed.

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The usual utter BS of banksters talking about something in the hope that it will create the effect that they desire, without actually having to do anything about it.

In fact, very often after they make their proclamations about what 'should' be done, they go off and actually do the exact opposite.

 

 

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4 hours ago, rantnrave said:

Does this mean his term on the MPC is about to come to an end?

Unusually for the good cop his term isn't due to end next: 

Mark Carney - Governor 
Term of appointment: 1 July 2013 - 30 June 2021
Mr Carney has announced that he will serve to 30 June 2019.

Ben Broadbent  - Deputy Governor, Monetary Policy
Term of appointment: 1 July 2014 - 30 June 2019

Sir Jon Cunliffe - Deputy Governor, Financial Stability
Term of appointment: 1 November 2013 - 31 October 2018

Andrew Haldane - Executive Director, Monetary Analysis & Chief Economist
Term of appointment: 1 June 2014 - 11 June 2020

Ian McCafferty - External member 
Term of appointment: 1 September 2012 - 31 August 2018

Michael Saunders - External member 
Term of appointment: 9 August 2016 - 9 August 2019

Silvana Tenreyro - External Member 
Term of appointment: 5 July 2017 - 4 July 2020

Dr Gertjan Vlieghe - External member
Term of appointment: 1 September 2015 - 31 August 2018

I thought there were 9 members?

http://www.bankofengland.co.uk/about/Pages/people/mpc.aspx

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They know they will have to cut rates when things get bumpy, but that would have meant raising rates 5 years ago so they had something to cut.

Solution: raise rates and then cut them again, like a week later, that ought to do it, kinda, maybe.

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5 minutes ago, Habeas Domus said:

They know they will have to cut rates when things get bumpy, but that would have meant raising rates 5 years ago so they had something to cut.

Solution: raise rates and then cut them again, like a week later, that ought to do it, kinda, maybe.

Instead of raising rates we will get more talk about raising rates.

Followed by a cut to zero.

By then, the eldest daughter will finish school.

F**k off back to Canada and find something else to screw up.

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10 hours ago, Sour Mash said:

The usual utter BS of banksters talking about something in the hope that it will create the effect that they desire, without actually having to do anything about it.

In fact, very often after they make their proclamations about what 'should' be done, they go off and actually do the exact opposite.

 

 

Yep. Talk the pound and try to make us think they care. Do they ******. Don't work any more though. Markets can see though the ********.

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4 hours ago, GreenDevil said:

Yep. Talk the pound and try to make us think they care. Do they ******. Don't work any more though. Markets can see though the ********.

Yep, artificially plug media, in hope the pound gains value, without doing it correctly, through interest rates. 

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Their dichotomy is that whilst 'forward guidancing' to prevent inflation they have dropped rates to to floor and sprayed the markets with cash consistently since the crunch. Greater efficiency could have been achieved if they had mixed their use of policy. Both policies would at least stay fresh and hence have a greater effect when used.

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reported in press as follows...

Summary...

"MPC policy maker urges higher interest rates

Michael Saunders, a key mem ber of the Bank of Eng land's Monetary Policy Com mittee (MPC), has said a mod est rise in interest rates is need ed to curb high in flation. In a speech in Car diff, he said it would help ensure a sustainable return of in flation to target over time " as the Br exit process might be bumpy".

 

Links...and page numbers...

http://www.bbc.co.uk/news/business-41106201

http://www.telegraph.co.uk/business/2017/08/31/raise-rates-stop-inflation-surging-says-bank-england-policymaker/

https://www.thetimes.co.uk/article/interest-rates-need-to-rise-says-bank-of-england-policymaker-m2s2rmdpj

The Guardian, Page: 26    The Independent, Page: 66   The Daily Telegraph, Business, Page: 29     The Times, Page: 40   Evening Standard, Page: 47   Daily Mail, Page: 76   The Scotsman, Page: 35  

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On 31/08/2017 at 9:55 AM, Errol said:

Until they actually do raise, all this talk is just the usual nonsense.

Agreed, just another short straw drawn this month, for who pretends to be an Interest Rate Hawk :rolleyes:.
Who does fall for this financial propaganda anymore?

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  • 292 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%



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