Jump to content
House Price Crash Forum
Sign in to follow this  
OnlyMe

Trichet Says Markets "sensible" To Price Ecb Hikes

Recommended Posts

One in the butt for Kaletsky - we're fine as we are are, we don't want no anglo-saxon debt/spend-fest shooting our costs out the wazoo thanks very much, so we'll be raising.

http://www.tiscali.co.uk/news/newswire.php...y_template.html

Trichet says markets "sensible" to price ECB hikes

20/02/2006 19:47

By Stella Dawson

BRUSSELS (Reuters) - Financial markets are "perfectly sensible" in expecting the European Central Bank to raise interest rates in March and to keep tightening credit after that, ECB President Jean-Claude Trichet said on Monday.

Edited by OnlyMe

Share this post


Link to post
Share on other sites

OM. I posted this earlier, but it didn't seem to attract much attention.

The key here IMO is that the ECB have gone from stable interest rates to a single rate hike and now to possible multiples.

Why don't people realise that once inflation starts to rear its ugly head then IRs have to very quickly revert back to neutral and then somemore. We could be looking at >4% IRs in Europe before we know it. All our imports will slowly get more and more expensive and the £ will be bad shape. Irrespective of what's happening to retail and the housing market, the BoE will raise, raise, raise to fend off inflation in UK.

At this point we'll have the US, AUS, Ireland, Spain and the UK housing markets going pop.

Share this post


Link to post
Share on other sites

OM. I posted this earlier, but it didn't seem to attract much attention.

The key here IMO is that the ECB have gone from stable interest rates to a single rate hike and now to possible multiples.

Why don't people realise that once inflation starts to rear its ugly head then IRs have to very quickly revert back to neutral and then somemore. We could be looking at >4% IRs in Europe before we know it. All our imports will slowly get more and more expensive and the £ will be bad shape. Irrespective of what's happening to retail and the housing market, the BoE will raise, raise, raise to fend off inflation in UK.

At this point we'll have the US, AUS, Ireland, Spain and the UK housing markets going pop.

Hi Karhu,

Sorry, I missed it earlier.

Like you say multiple rises not only being talked about in the US, but now in Europe.

I don;t believe the BOe is at all independent, twice now they have re-ignited the debt bubble which is growing at £10bn a month again and each time they just react like paralised bunnies in the headlights trying to spin their way out of trouble, regurgitatating the same rubbish warnings, when they themselves are the rpime creators of the problem.

I have no faith they will pull this one off. There will be nothing left of manufacturing with the tripple whammy of of a clobbered home market, poor investment (it is too costly to bother here) and rocketing input costs.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 301 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%



×
×
  • Create New...

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.