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CrashConnoisseur

Guardian: Bank Of England Governor Rules Out New Housing Boom.

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'Bank of England governor rules out new housing boom':

http://money.guardian.co.uk/houseprices/st...1772210,00.html

Mervyn King, the governor of the Bank of England, yesterday ruled out the possibility of a new housing boom when he stressed that even after the slowdown two years ago, property valuations looked "remarkably high".

His warning came as the Bank's quarterly inflation report -- its prime tool for analysing the state of the economy -- suggested that households may be faced with slightly higher mortgage rates over the coming months if the government's 2% inflation target is to be met.

[...snip...]

Mr King said that market expectations should not be considered a forecast of what the Bank's monetary policy committee would decide to do. "No one knows where interest rates are going," he told a news conference after the report was published. "It's a mistake to try and get into this business of nods and winks of where interest rates may or may not go."

Edited by Jeff Ross

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Yup! Watch the trends. And not just the BoE trend, but global trends.

That idiot that upset Gall Bear on the train is making the same mistake as many others, "It is different this time, because IR are so low!"

Yeh, right, but they are trending up, suckers. (Harsh laungage :) )

Edited by FTBagain

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Do you think he has waited till May to do this to shore up the annual indexes (i.e. stop them going negative) or is it just a reaction to the latest speculation?

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Do you think he has waited till May to do this to shore up the annual indexes (i.e. stop them going negative) or is it just a reaction to the latest speculation?

I would have said his words are more aimed at slowing the indices, without actually having to 'do' anything about them, rather than talk them up.

Remember, they are trying to engineer a 'soft landing', something that is not in our (or at least my) best interests, but it is in the national economy's best interest. (I only want a crash, because I have not got the time to wait for a slow correction, I'm getting too old. B) )

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but it is in the national economy's best interest

Disagree, the longer we have the head in the clouds the worse the destruction of persoanal finances and the export of our future will be.

If the situaiton goes too far and we let enough slip away this country will never (in my or my childeren's lifetime) run a trade surplus again and combined with rising debt the whole country will be technically bankrupt.

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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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