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CrashConnoisseur

Independent: Surge In Housing And Manufacturing May Raise Rates.

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'Surge in housing and manufacturing may raise rates':

http://news.independent.co.uk/business/new...ticle361283.ece

The housing market and the manufacturing sector have both seen a strong upturn in activity, according to surveys published today ahead of Thursday's decision on interest rates by the Bank of England.

[...snip...]

The Monetary Policy Committee is certain to leave rates at 4.5 per cent this week but opinion is swinging towards a hike being the next move.

Ben Broadbent, UK economist at Goldman Sachs, said: "We continue to think the next move in rates will be up and would not discount the chances of a minority vote for a hike -- or at least the case for one appearing in the MPC minutes -- over the next three months."

Money markets are pricing in a hike this year and last week the National Institute of Economic and Social Research urged the Bank to raise rates in a pre-emptive move to curb inflation.

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The BOE will raise when they are forced to by the financial markets, all talk of pre-emptive action of any sort is rubbish. The BOE are the ones printing money like there is no tomorrow whilst pretending that the CPI figures are representative of living costs - which generally they are not.

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Surge in housing and manufacturing may raise rates

...

House prices enjoyed their strongest rise for two years last month, while factory bosses have reported a "sharp" increase in both confidence and performance. The price of the average home rose by 0.6 per cent on the back of a strong rise in London, according to the property data company Hometrack.

So he's implying that the housing market will give the BoE reason to raise rates.

Another reporter who doesn't understand that the BoE are supposed to constrain consumer inflation, and not asset price inflation.

Do people really get paid money for writing this drivel?

Edited by BandWagon

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  • 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%



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