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Jason

Bank Of England - Mpc Minutes (may)

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http://www.bankofengland.co.uk/monetarypol...decisions06.htm

Direct Link: http://www.bankofengland.co.uk/publication...006/mpc0605.pdf

The Governor invited the Committee to vote on the proposition that the repo rate should be

maintained at 4.5%. Six members of the Committee (the Governor, Rachel Lomax, John Gieve, Kate Barker, Charles Bean and Paul Tucker) voted in favour of the proposition, and two (Stephen Nickell and David Walton) voted against. Stephen Nickell preferred an immediate cut in the Bank’s repo rate of 25 basis points, and David Walton preferred an immediate increase of 25 basis points.

Edited by Jason

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interesting- i thought it would have been closer than that. Perhaps they are just waiting for the right time. Madness to suggest a rate cut though, surely?

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Interesting. Walton votes for a hike - very significant. That should start to make the other members think. Also, Steve Nickell is about to leave the MPC.

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Interesting. Walton votes for a hike - very significant. That should start to make the other members think. Also, Steve Nickell is about to leave the MPC.

Yup! Global rates are on the rise its just a matter of when.

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The money markets are taking this hawkishly. They put a 30% chance on someone voting for a rise, so Walton's vote is above market expectations.

We're now expecting a rise sooner rather than later. A rise in July or August seems firmly on the cards.

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One member felt that the balance of risks to inflation, relative to the 2% target, had shifted a little too much to the upside for comfort and that warranted an immediate increase in rates.

We could be on for next month, or likely July.

:lol::lol::lol:

Its TTRTRates

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Not bad! A rise vote considering CPI* figure was at 1.8%

*Lies

The current CPI figure is not important. It is the two year projection of the figure that is important. IR rises take months-years to filter through.

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The current CPI figure is not important. It is the two year projection of the figure that is important. IR rises take months-years to filter through.

Tell that to Stephen Nickell! ;)

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Have we ever had a 1up 1down split before?

I have - when I was in College :P

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Currency markets are pricing in a hike soon:

1 U.K. £ =

1 1.8982

(This is all our faltering exporters need--no wonder the car manufacturers are pulling out with the pound soaring making pricing uncompetitive. My guess is that unemployment will start to pick up next month as orders from overseas drop).

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Currency markets are pricing in a hike soon:

1 U.K. £ =

1 1.8982

(This is all our faltering exporters need--no wonder the car manufacturers are pulling out with the pound soaring making pricing uncompetitive. My guess is that unemployment will start to pick up next month as orders from overseas drop).

The £ has gone up every time the housing market has gone into bubble mode again. This is not your normal interest rate driven sterling pattern.

The entirely orchestrated housing / debt bubble has simultaneously driven costs up and driven currency in a dreiction detrimental to export.

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From the minutes

30 On balance, most members felt there was no need to stimulate demand at this time given the

signs of a pickup in growth and the near-term risks to inflation from higher energy prices. Equally,

there appeared to be no pressing need to tighten policy given the continued weakness of domestically

generated inflation.

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From the minutes

30 On balance, most members felt there was no need to stimulate demand at this time given the

signs of a pickup in growth and the near-term risks to inflation from higher energy prices. Equally,

there appeared to be no pressing need to tighten policy given the continued weakness of domestically

generated inflation.

We are heading for £1.2T personal debt by the summer. Already ******ed up big time.

So now they are ignoring non-domestically generated inflation, how nice, so they can carry on with their once-eyed piss-poor money printing strtegy which was doomed from the start.

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Equally, there appeared to be no pressing need to tighten policy given the continued weakness of domestically generated inflation.

Out today:

Directors of small firms enjoyed avergae pay rises of 12.4% last year. Salary increases avaeraged 10.7% but were boosted by annual bonuses. Wage rises for directors in small companieswere roughly in line with those in the country's biggest companies. (Income Data Services)

So no inflation there then :lol::lol::lol:

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6 + 1 + 1 = 8

Unless my maths has gone seriously downhill.

What about the mysterious ninth member?

frugalista

MPC are operating with only 8 as one of them had to resign after taking another job in a city bank. Conflict of interests and all that.

I believe in a hung vote, Merv has the final say.

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With nickel gone, a rise is almost certain. Question is will Gordon have enough numpties under his control to stop it?

Edited by erd

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Guest muttley

Have we ever had a 1up 1down split before?

Doesn't this send out the message that the BoE don't know what they are doing?

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  • 335 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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