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Bank Expected To Keep Rates Level And Cut In August


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HOLA441
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HOLA442
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HOLA443
With the latest official data showing a fall in UK manufacturing output, analysts expect an eventual 0.25% drop in rates, but not until the summer.

Written as if the entire decision about Interest Rates is tied to manufacturing - a sector which has been shrinking for years due to factors which have got sod all to do with Interest Rates. :rolleyes:

Yet another article keeping the rate-cut flame alive. Last time I saw Interest Rate futures they agreed more with a rise than a cut.

Edited by Warwickshire Lad
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HOLA444

Cut In August? whaaaaaaaat!

...oh so the rate cut that was supposed to happen in february,then may,is now postponed again.....surprise surprise!!!

...in the mean time the fed keeps hiking,as does ECB.....and our exchange rate goes pete tong!!!

...that means IMPORTED INFLATION!!!!......no rate cut.PERIOD!

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HOLA445

I would laff me c**k off if they rose interest rates tommorrow :)

Have the MPC generally SHOCKED people or are they predictable? I have read that MERV basically drops MASSIVE hints before a decision if they are to change?

TB

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HOLA446

ah you need to read who the "analyst" is...

why it is our old friend "Howard Archer, economist at Global Insight."

believe it or not i thought they would be quoting him before i clicked the link in post #1 :rolleyes:

Edited by gasket37
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HOLA447

You can't really blame the public for thinking rates will go down when you read articles like that. Why doesn't the BBC relate it to inflation, and how that is increasing? The media in this country is a joke. Wasn't the BBC telling us rates would be reduced at every meeting before xmas in 2005?

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HOLA448
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HOLA4410
it is truly bizarre - IR futures are showing a rate hike and 'analysts' have been moving their expectations towards a hike

it really is about time we did something serious about the BBC - any ideas

Yeah, press the red button!

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HOLA4411
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HOLA4412
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HOLA4413
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HOLA4414

The government may yet have the last laugh. I really think that when they realise the whole country is sinking under a pile of steaming debt they will cut rates, to try to inflate themselves out of trouble. Thats bad news for anyone with cash in the bank like a lot of the bears on this site.

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HOLA4415

Indeed, it raised a smile with me too.

I enjoy TB's posts, they are always energetic if that makes any sense!

NDL

Energetic? ADHD more like.

Just think how bad he'd be if they didn't put Ritalin in the Liverpool water supply...

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HOLA4416
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HOLA4417
Guest Guy_Montag

The government may yet have the last laugh. I really think that when they realise the whole country is sinking under a pile of steaming debt they will cut rates, to try to inflate themselves out of trouble. Thats bad news for anyone with cash in the bank like a lot of the bears on this site.

I regret to say, I expect you are right. I think we will see a rate cut long before we see a rate rise, in which case, I'm f'ed.

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HOLA4418

IR on hold March, April, May, June, July, Aug, Sept.

IR increase .25% in Oct or Nov 06 and again .25% in March or April 07.

IR at 5% within 12 months. Too little Too late, so they may have to go up to 5.5% to 6% by early 2008. not high, in fact historically low.

However high enough to shake the tree hard enough to loosen the grip of the feckless, greedy and foolhardy,who took on too much debt underpined by hope alone.

Pablo Silver or Lead?

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HOLA4419

The government may yet have the last laugh. I really think that when they realise the whole country is sinking under a pile of steaming debt they will cut rates, to try to inflate themselves out of trouble. Thats bad news for anyone with cash in the bank like a lot of the bears on this site.

If they did trim rates and allowed inflation to run havoc surely that would lead to salary increases across the board. So then we all earned more and the debts looked smaller. In fact what would likely happen is that the price of everything would just go up and homeowners would feel even more smug and richer, and would simply extract more cash out of their property. Wages would not increase and we would be basically where we are now but worse.

Having said that I didn't expect a cut last August. However since that the BofE seemed to have been rather vocal about the possibility of encouraging more debt with a cut and in doing so have got the CBI and retailers off of their backs. I can't see a cut until the Feds raising is through.

Edited by Stanley
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HOLA4420

The government may yet have the last laugh. I really think that when they realise the whole country is sinking under a pile of steaming debt they will cut rates, to try to inflate themselves out of trouble. Thats bad news for anyone with cash in the bank like a lot of the bears on this site.

Maybe we can all kiss goodbye to our jobs in that case.

I did say before that they cut rates all throughout the last recession.

Then KingOfNowhere jumped in and pointed out that we aren't in recession.

So it SHOULD be good news on rates from now on.

B*LLOCKS!!!

:o

F***g pigs hit the window again, dammit.

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HOLA4421

The government may yet have the last laugh. I really think that when they realise the whole country is sinking under a pile of steaming debt they will cut rates, to try to inflate themselves out of trouble. Thats bad news for anyone with cash in the bank like a lot of the bears on this site.

How exactly is that going to work if wage increases are already behind inflation?

You can only inflate your way out of trouble if wages keep up. I can't see that happening.

Lowering rates whilst everyone else is raising punishes everyone through higher prices of imported goods. Raising rates hurts those who have overstretched the most.

Am I missing something? Could you explain how your "inflate themselves out of trouble" works? A genuine question.

NDL

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HOLA4422
Thats bad news for anyone with cash in the bank like a lot of the bears on this site.

Only if it's in Sterling. Anyone who transferred their cash to Mexican Pesos early last year is up over 10% thanks to the BoE muppets: think about that for a moment... the Mexican Peso is now considered a better store of wealth than the pound.

The pound has been the dog of the currency world since the BoE cut rates. Has any other significant nation cut interest rates in the last year?

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HOLA4423

The government may yet have the last laugh. I really think that when they realise the whole country is sinking under a pile of steaming debt they will cut rates, to try to inflate themselves out of trouble. Thats bad news for anyone with cash in the bank like a lot of the bears on this site.

Then sterling tanks!

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