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

The Times: M P C May Have Begun I R Hike Preparations

Recommended Posts

http://business.timesonline.co.uk/article/...2165879,00.html

The Times May 05, 2006

City fears that house price surge* will lead to higher rates

By Gary Duncan, Economics Editor

THE sharpest rise in house prices* and the strongest expansion in the services sector for two years emerged from key April surveys yesterday, igniting City speculation that the next move in interest rates may now be a rise.
The latest blows to hopes of another cut in borrowing costs came as the Bank of England held rates for a ninth month in a row after an earlier spate of rosy economic news this week, and amid nervousness over inflationary pressures.
The City’s attention is now trained on next week’s quarterly Inflation Report for clues to an increasingly uncertain outlook for base rates, with suggestions that the
Bank’s Monetary Policy Committee may have this week begun to debate the case for an increase.

http://www.theherald.co.uk/business/61452.html

Odds shorten on rates rise

UK service sector growth hit a 27-month high last month as house prices recorded their biggest jump for two years, according to surveys yesterday which shortened the odds on the
next move in interest rates being upward.
While this mounting evidence is good news for Chancellor Gordon Brown in meeting his 2% to 2.5% growth target for 2006, it is
doing serious damage to the hopes of those who have been predicting there is room for another cut in UK interest rates.

______________________

*According to Halifax and based on asking prices not actual sales.

Edited by Realistbear

Share this post


Link to post
Share on other sites

It's gotta happen, just a question of when and by how much. Half a point will not burst the housing bubble, but it could really take the wind out of its sails. If the rate rise is left until after the summer though, the horse may have bolted for houseprices fro this year.

Share this post


Link to post
Share on other sites

Can we stop debating the fact that interest rates are about to rise. That is a fact IMO.

The question that needs to be considered is how high will they go?

Share this post


Link to post
Share on other sites

Can we stop debating the fact that interest rates are about to rise. That is a fact IMO.

The question that needs to be considered is how high will they go?

What we should perhaps be asking is what rate would cause financial order to be restored, i.e. an end to speculation in Gold, property, currencies, etc.

What interest rate would signify a "healthy" UK economy ?

Share this post


Link to post
Share on other sites

Half a point will not burst the housing bubble, but it could really take the wind out of its sails.

Disagree with that. Look at how much the quarter point cut last year sent the sheeple into a spin about property. A mere quarter point move would be enough take the wind out. Half a point and HPC will stop being a cult and become mainstream.

Share this post


Link to post
Share on other sites

http://news.bbc.co.uk/1/shared/spl/hi/in_d...html/houses.stm

Ok, so a mortage lender tells us that prices are rising and we should all borrow large sums from them to buy..

but the LAND REGISTRY is showing large drops around me...

Now even if I where a housing investor I would have to be the worlds biggest (person planning to see you the day after monday...) to believe the mortage lender over the Land Registry..

The BBC appears bulls, but if you check their website it shows the recorded price trends for all registered sales..

thats less bullish..

:)

I had a guy at work, senior manager.. senior... lol.. read the halifax figures and scoffed at me..

:)

he thought he was being smart...

I may have the techy arrogance... but he only annoyed me that he reminded me that so many are that dumb.

House prices are a dropping, but they are a matter of opinion and that is slowing the drops.. soon opinion will chan

Share this post


Link to post
Share on other sites

isint it so satisfying to be ahead of the game?

we knew this was gonna happen before the sheeple ever got told, and im sure many of us quite rightly are basking in the glow of self satisfaction of being proved right once again.

the sheeple realy have no idea do they

Share this post


Link to post
Share on other sites

Because Gordon has sat at the feet of his mentor Alan "Big Al" Greenspan he will move the BoE when the lying about inflation stops. By then the forces of inflation will have become entrenched forcing him to rasie rates more sharply than he would have needed to had the cut last August been a rise instead.

With the world moving up and Fed probably stopping at 5.5% my guess is that Gordon will have to move to 5.5% before the end of the year. If the markets rumble the over valuation of the pound all bets are off. Even 7% would be possible.

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.

  • 338 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.