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Realistbear

M P C's Tucker Issues Rate Warning From The Bo E

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http://news.monstersandcritics.com/uk/arti...inflation_fears

Recent signs that UK inflation expectations are rising means that Bank of England
rate setters must be 'constantly vigilant', a member of the bank's monetary policy committee (MPC) has said.
In a speech to business school students at the University of Chicago, the bank's executive director of markets, Paul Tucker, said the MPC must be seen to be prepared to do whatever necessary in order to maintain well-anchored inflation expectations.
Higher energy costs pushed up consumer prices at their fastest rate in almost five years in April
, meeting the Bank of England's two per cent target for inflation.
Economists fear that inflation will continue rising, with the bank's latest poll of inflation expectations at 2.7 per cent for the coming year, the highest anticipated level of price growth since the bank began its survey in 2000.

:)

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They make it up as they go along. Inflation is low when it suits the agenda to sell you their money. Now they want to reel it in, f**k me inflation's rampant. No shit Sherlock! <_<

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That's right - prepared to do whatever necessary - even if that means a HPC. ;)

Hi,

Inflation is not very nice, much harder to avert than deflation and socially destructive as well. The second half of the 1970's was a pretty unpleasant era. In the last crash, less than 1% of the population with mortgages had their properties repocessed and most were looking at a doubling in valuation five years after it. It has always been very possible to get another mortgage if you have been repocessed before. Politically, don't think for a moment the government won't sacrifice a percentage point of the population to an HPC if it averts bigger problems. Governments are like that, your friend when they are pumping up prices for votes and taxation, conveniently able to blame external forces if it all goes wrong. And land issues are about the easiest tool of manipulation available to governments. Anyone else feel a shift in sentiment in the past few months about the 'miracle economy'? Are we finally falling in line with the US, Australia, Canada, New Zealand, Japan and the EU?

Edited by boom_and_bust

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Guest Charlie The Tramp

Another warning from the RSA.

Interest rates around the world can't stay low and steady ``permanently'' and central banks will continue to control inflation, Reserve Bank of Australia Deputy Governor Glenn Stevens said.
Australia's central bank joined others around the world in raising rates to curb inflation. The Fed has increased borrowing costs 16 times since June 2004 to 5 percent. China on April 27 raised its lending rate for the first time since October 2004. Canada raised its key rate for a sixth consecutive meeting to 4 percent.

The Reserve Bank Of Australia

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http://news.ft.com/cms/s/93508fea-ed1e-11d...00779e2340.html

BoJ thrust into spotlight as overnight rates hit ceiling

By David Pilling in Tokyo

Published: May 27 2006 03:00 | Last updated: May 27 2006 03:00

Japan's overnight interest rate briefly hit its ceiling of 0.1 per cent yesterday, calling into question the central bank's control over the call market and its ability to keep rates at "effectively zero" in line with its policy guideline.
Paul Sheard, economist at Lehman Brothers, said 10 basis points clearly did not fulfil the bank's policy commitment to keep rates at effectively zero, which he interpreted to mean one or two basis points.

Great news for a BH weekend! Higher IR in Japan = much higher rates in the debtor nations (UK, EU and US).

:D:D:D

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Japan's overnight interest rate briefly hit its ceiling of 0.1 per cent yesterday, calling into question the central bank's control over the call market and its ability to keep rates at "effectively zero" in line with its policy guideline.
It's a lovely little fantasy to think that central banks control interest rates.
Ultimately rates are set by the market, and if there's a major financial crisis, they will move irrespective of what any central bank wants them to do.

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  • 302 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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