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F . T. : Eurozone Bonds Falling And Money Supply Rising

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http://news.ft.com/cms/s/8c8e775a-efdd-11d...20abe49a01.html

Eurozone bonds higher on interest rate fears

By Joanna Chung in London and David Turner in Tokyo

Published: May 30 2006 14:18 | Last updated: May 30 2006 14:18

Eurozone government bonds fell on Tuesday after strong money supply data fuelled fears of higher interest rates.
The ECB is widely expected to raise its key interest rate by 25 basis points on June 8 but there is also some speculation that it
may even raise it by 50bp
.
Data on Tuesday showed that
money supply growth accelerated sharply
, rising from 8.5 in March – revised from 8.6 percent previously – to 8.8 percent in April.
Private sector loans also grew sharply, from 10.8 percent in March to 11.3 per cent in April, the highest since the euro was launched in 1999.
“Whichever way you view the faster acceleration in eurozone M3 money supply growth, it will be
anathema to the ECB and vindicate their aim for a rate hike at next week’s
council meeting,” said David Brown, chief European economist at Bear Stearns.

IR hikes are gathering more momentum to the upside which may begin to pressure Gordon to hike UK rates or get left in the dust. It will spell the end of the "Miracle Economy" which has relied on low IR and consumer spending but it seems its time to begin paying the bill for all that splurging on credit.

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BoE can't put it off much longer.

This is going to be hilarious, even now most people think i'm mad when suggest IR rises. Oh well I guess they will have to learn the hard way.

Tell me about it.

I mentioned to our ex-landlord, a flakey amateur BTL-er, that IR's were on the way up. "Dont say that!. Ive just switched my mortgages to trackers!" :blink:

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BoE can't put it off much longer.

This is going to be hilarious, even now most people think i'm mad when suggest IR rises. Oh well I guess they will have to learn the hard way.

As Tiny Tim once said , "f*ck um all, each and every one of them"

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It's like a big fart just building up pressure. It's gotta come out soon...

:D

And sometimes you follow through. :o

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From Ireland

http://www.bizplus.ie/news/1554

Interest Rate Hike 'Guaranteed' Next Week

30/05/06: IIB Bank economist Austin Hughes said enother month of very strong bank lending across the euro area appears to guarantee an interest rate increase at next week's European Central Bank governing council meeting
"Clearly, the ECB will not want to discourage productive borrowing by companies. However, there is a concern that a good deal of the acceleration in household borrowing in recent months will merely translate into higher house prices." (30/05/06)

ECB wakes up to the fact that HPI is destructive and not some kind of "Economic Miracle" as Gordon Brown has tried to suggest.

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From Ireland

http://www.bizplus.ie/news/1554

Interest Rate Hike 'Guaranteed' Next Week

30/05/06: IIB Bank economist Austin Hughes said enother month of very strong bank lending across the euro area appears to guarantee an interest rate increase at next week's European Central Bank governing council meeting
"Clearly, the ECB will not want to discourage productive borrowing by companies. However, there is a concern that a good deal of the acceleration in household borrowing in recent months will merely translate into higher house prices." (30/05/06)

ECB wakes up to the fact that HPI is destructive and not some kind of "Economic Miracle" as Gordon Brown has tried to suggest.

I don't think the BOE will raise rates any time soon if ever under this government. They will be under strict orders from nu labour's Gordon Brown. Anybody who thinks the MPC is independent is wrong.

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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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