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Rate rise "likely" in coming months of inflation continues to surge

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'In minutes of its latest rates decision, the Monetary Policy Committee (MPC) said there was a "slightly stronger picture" for the economy since its forecasts last month thanks to signs of a firmer housing market, stronger employment and a rebound in retail and new car sales.'

Eh...?

http://www.zerohedge.com/news/2017-09-11/brits-have-suddenly-stopped-buying-cars

 

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13 minutes ago, Maynardgravy said:

'In minutes of its latest rates decision, the Monetary Policy Committee (MPC) said there was a "slightly stronger picture" for the economy since its forecasts last month thanks to signs of a firmer housing market, stronger employment and a rebound in retail and new car sales.'

Eh...?

http://www.zerohedge.com/news/2017-09-11/brits-have-suddenly-stopped-buying-cars

 

Oh they stooped buying them a few years.

Just rent them using PCP.

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34 minutes ago, Maynardgravy said:

 thanks to signs of a firmer housing market, 

 

Wtf?

Do they have a 20 year lag in their data or something?

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33 minutes ago, crouch said:

At least you know that the next movement in interest rates will be down.

Depends if the population start protesting.

Im ready to start, arent you ?

 

I'd wager the bankers and politicians cannot believe how passive the British people have been post 2007 hence why they are still pushing it to see what they can get away with..

Edited by TheCountOfNowhere

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4 minutes ago, TheCountOfNowhere said:

Depends if the population start protesting.

Im ready to start, arent you ?

 

I'd wager the bankers and politicians cannot believe how passive the British people have been post 2007 hence why they are still pushing it to see what they can get away with..

Protest by buying Euros. If we all did that £ would crash, we would be richer and Carney may rise rates. Win win. Been banging on about it for a while. Yes £ up but dead cat bounce. Carney KNOWS there is a housing bubble and is clearly playing two headed game - warning of rises in a pathetic attempt to defuse but never actually raising rates because of fragile UK economy.

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2 hours ago, Mapatasy said:

Nice article in The Spectator from August...

https://blogs.spectator.co.uk/2017/08/mark-carney-should-stop-blaming-brexit-for-rock-bottom-interest-rates/

"Carney doesn’t want to raise rates, probably ever. He will go to his grave with ‘0.25 per cent’ chiselled into his headstone"

Screen-Shot-2017-08-06-at-14.48.57.png

A picture says a thousand words.  An updated version would look even worse, this one doesn't have the 0.25% interest rate drop.

Blaming Brexit is laughable.  They've been coming out with this ******** for the last 8 years.

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A bit strange that they mention the housing market as they usually deny that they are influenced by it. Seems that if the market does slide he'll rush out and drop rates.

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2 minutes ago, Blod said:

A bit strange that they mention the housing market as they usually deny that they are influenced by it. Seems that if the market does slide he'll rush out and drop rates.

Pretty much. Transparent.

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Noginthenog

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On 16/07/2015 at 9:53 PM, silver surfer said:

http://www.bbc.co.uk/news/business-33560035

-Interest rates go up at the end 2015 or early 2016

-Rates to go up by very small increments, maybe 0.25% jumps

-The new normal is interest rates levelling off at about 2%

Ha ha!

Higher interest rates, not a chance! Firstly both Carney and the Fed (Yellen) have been saying this like a broken record now for years. I think it's aimed at the currency markets where we are possibly the least ugly at the ball, (but still very ugly!) As someone else said it's all just hot air.

Meanwhile I think I'm right in saying that The Bank of England is now holding about two thirds of the total issuance of Gilts as a result of QE. So the treasury pays lots of interest to the Bank of England. Does the treasury want higher interest rates???

Meanwhile the deficit is still there. Yes Ozzy has reduced it somewhat, but the political will is just not there to really deal with it. He said in 2010 that it would be gone by 2015, oh dear, why's it still there....

Public sector net debt, £1,500,000,000,000 and rising with a stagnent over leaveraged economy complete with QE, ZIRP, HTB etc. Does that sound like an environment where you'd raise interest rates? Thought not!

Still I live in hope that one day they might actually deliver, either that or the next financial black swan will. I'm betting on the latter...

(I posted this in 2015, still most other peeps on here have said the same...)

Edited by Noginthenog

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53 minutes ago, TheCountOfNowhere said:

Depends if the population start protesting.

Im ready to start, arent you ?

 

I'd wager the bankers and politicians cannot believe how passive the British people have been post 2007 hence why they are still pushing it to see what they can get away with..

In 2011 the RPI was at 5.2% and the BOE "looked through" the figures and did not raise rates. We are in a broadly similar situation now and unless there is a wage/price spiral (no chance) or a collapse in sterling (some chance) then they should stand pat. Why?

The reason is that real wages are struggling and this, in itself, will dampen down inflation and the present spurt could well be temporary - as it was in 2011. Putting rates up in these circumstances is pointless; it will just make a bad situation worse and squeeze incomes and employment further.

I'm a saver; this financial repression has cost me a lot of money; I'd love rates at 5-6% but it won't happen (unless sterling does collapse in which case it will be futile) and I think Carney will go from the BOE in 2019 never having increased rates

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I think he has already lost all credibility, not that he cares.......one minute it is unemployment figures then inflation figures, what next just do it, don't keep saying will do it then don't...;)

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39 minutes ago, winkie said:

I think he has already lost all credibility, not that he cares.......one minute it is unemployment figures then inflation figures, what next just do it, don't keep saying will do it then don't...;)

They cut at the first sign of HPC , that's why they mentioned HPI firming as a reason to raise so they can then use it as an excuse later.

Edited by Blod

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  • 293 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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