BOE confrims it "will have to act" to curb inflation

[spyguy]

Just now, Freki said:

Here is the 2Y Guilt

And when it comes to sterling contracts:

Meanwhile, the FTSE100 did not get the full memo yet it seems.

 

Equity markets are OK in rising inflation; companies have pricing power.

Bonds have to guess the rate in the future.

[Freki]

Just now, spyguy said:

Equity markets are OK in rising inflation; companies have pricing power.

Bonds have to guess the rate in the future.

From an actuarial point of view, no. At 0% or negative any assets is meant to be worth infinity. Hence the rise of the US indices to the current stratospheric levels. FTSE 100 won't be able to brush it off just by waving the "pricing power" card. Yet valid, the other cards are stronger.

[spyguy]

Traders bet Bank of England will raise rates as soon as next month

Andrew Bailey’s tough talk on inflation sparks sell-off in short-dated UK government bonds

 

https://www.ft.com/content/eab549c0-828e-44ab-8a22-b114bf2fe20f

Traders are betting the Bank of England will increase interest rates from record lows as soon as November after governor Andrew Bailey said at the weekend the central bank “will have to act” to keep a lid on inflationary pressures.

[petetong]

17 hours ago, dances with sheeple said:

By housing costs you mean heating the thing and feeding yourself I assume? Is there a link somewhere to this?

https://www.theguardian.com/business/2021/oct/18/bank-of-england-inflation-bailey-interest-rates-energy-prices

[Timm]

15 hours ago, gruffydd said:

They won't get ahead of the curve - they're old school laggards who don't even seem to be on top of the basic dataflows. So it's 0.15% in December.

Then a bigger rise in February when they eventually realise they're behind the curve. 0.25%. 

Nothing will happen in November... some bolloxology about Furlough (we already know there's been little impact re: the ending of furlough, but apparently these Bank of England twits need anther month lol). 

 

BOE LIKELY TO RAISE INTEREST RATES IN NOVEMBER, GOLDMAN SAYS

https://www.forexlive.com/news/!/boe-likely-to-hike-rates-in-november-meeting-goldman-sachs-20211018

[dances with sheeple]

7 minutes ago, petetong said:

https://www.theguardian.com/business/2021/oct/18/bank-of-england-inflation-bailey-interest-rates-energy-prices

Cheers, hopefully the media will ramp up the "fear" LOL, wouldn`t want to be sitting on 500k mortgage debt for a London newbuild with cladding issues though.......

[spyguy]

BoE are starting to lose the benefit of the doubt from the market.

 

[zugzwang]

5 minutes ago, spyguy said:

BoE are starting to lose the benefit of the doubt from the market.

 

And not before time! 👊

[Zzzzzzzzzzzzzzzzzzzzzzzzzz]

42 minutes ago, Timm said:

BOE LIKELY TO RAISE INTEREST RATES IN NOVEMBER, GOLDMAN SAYS

https://www.forexlive.com/news/!/boe-likely-to-hike-rates-in-november-meeting-goldman-sachs-20211018

If the Bank of England is bounced into a November hike, they really are in panic mode. 

Do the giant squid guys have better intel than most of the rest of us? Hmmmm. Knowing that crowd, perhaps they do. 

Edited October 18, 2021 by gruffydd

[winkie]

Only have to raise it 0.1% to double the cost of borrowing.

[TheCountOfNowhere]

One of the ebvil banksters said that just saying they'll raise IRs has had the desited effect with bonds prices going up etc.

They're not going to raise and if they do it wont be above 0.25%-0.5%, they'd f**king liars, corrupt self serving criminals IMHO

 

 

 

[TheCountOfNowhere]

16 minutes ago, gruffydd said:

If the Bank of England is bounced into a November hike, they really are in panic mode. 

Do the giant squid guys have better intel than most of the rest of us? Hmmmm. Knowing that crowd, perhaps they do. 

There is no panic....

https://notayesmanseconomics.wordpress.com/2021/10/18/the-bank-of-england-plans-to-take-centre-stage/

 

"

There is a theoretical underpinning to this and was highlighted late last week by new policymaker Catherine Mann.

LONDON (Reuters) – The Bank of England can hold off on raising interest rates because investors are doing some of the central bank’s work for it by betting on tighter monetary policy in Britain and the United States, BoE interest rate-setter Catherine Mann said………….”This means that there’s a lot of endogenous tightening of financial conditions already in train in the UK. That means that I can wait on active tightening through a Bank Rate rise,” she added.

"

 

Shameless f****** liars.

[TheCountOfNowhere]

Their only concern is for their house price bubble 

[dances with sheeple]

1 minute ago, TheCountOfNowhere said:

Their only concern is for their house price bubble 

Spiking bond yields don`t help that though?

[highcontrast]

18 minutes ago, gruffydd said:

If the Bank of England is bounced into a November hike, they really are in panic mode. 

Do the giant squid guys have better intel than most of the rest of us? Hmmmm. Knowing that crowd, perhaps they do. 

I wondered about this, they need to up the interest rate but they don't want to appear to be the Christmas Grinch and raise them in December just before  everyone spends on excess food,drink, partying and presents. Perhaps if they do it in November they hope people will have short memories and still spend like crazy in December?

Damned if they do, damned if they don't 😄

[petetong]

4 minutes ago, TheCountOfNowhere said:

Their only concern is for their house price bubble 

I thought I was pessimistic ...

[iamnumerate]

34 minutes ago, zugzwang said:

And not before time! 👊

A very uncontroversial view.  How many times can Peter cry wolf?

[Timm]

14 minutes ago, winkie said:

Only have to raise it 0.1% to double the cost of borrowing.

And 0.05% would raise the cost by 50%.

[petetong]

5 minutes ago, TheCountOfNowhere said:

There is no panic....

https://notayesmanseconomics.wordpress.com/2021/10/18/the-bank-of-england-plans-to-take-centre-stage/

 

"

There is a theoretical underpinning to this and was highlighted late last week by new policymaker Catherine Mann.

LONDON (Reuters) – The Bank of England can hold off on raising interest rates because investors are doing some of the central bank’s work for it by betting on tighter monetary policy in Britain and the United States, BoE interest rate-setter Catherine Mann said………….”This means that there’s a lot of endogenous tightening of financial conditions already in train in the UK. That means that I can wait on active tightening through a Bank Rate rise,” she added.

"

 

Shameless f****** liars.

I thought I was pessimistic ... if they don't or in the very near future then you are correct and house prices trump everything including the ability of people to feed themselves ...

[TheCountOfNowhere]

3 minutes ago, dances with sheeple said:

Spiking bond yields don`t help that though?

Depends who's funding the mortgages

When the bankers say they are worried about inflation, what they mean is, they're worried about having to raise interest rates because of inflation

 

They really are going to destroy 1000s of peoples, either their house prices of their wages/pensions/savings.

 

[TheCountOfNowhere]

37 minutes ago, zugzwang said:

And not before time! 👊

10 years too late !!!!

 

[TheCountOfNowhere]

 

Something's definitely in the pipeline.

[dances with sheeple]

4 minutes ago, highcontrast said:

I wondered about this, they need to up the interest rate but they don't want to appear to be the Christmas Grinch and raise them in December just before  everyone spends on excess food,drink, partying and presents. Perhaps if they do it in November they hope people will have short memories and still spend like crazy in December?

Damned if they do, damned if they don't 😄

There will be a lockdown in December probably and they are going to have to raise them anyway, the people who matter will be as well positioned as they can be, but there is going to be fallout for residential and commercial property sadly, the real players don`t care about some Doughnut in Wakefield or Preston with 6 BTL`s although the commercial rent damage might hurt them a bit.

[dances with sheeple]

4 minutes ago, TheCountOfNowhere said:

 

Something's definitely in the pipeline.

What is it though?

[simon99]

I've lost count the number of times the BoE have threatened to raise rates over the years. It's like they think they don't actually need to raise them, just warn it will happen to get the desired effect.