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Realistbear

E U Inflation Races Ahead Pointing To A .50% Hike

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http://abcnews.go.com/Business/wireStory?id=2027179

Reuters

Jun 1, 2006 — By Toni Vorobyova

LONDON (Reuters) - The dollar ticked higher against most major currencies on Thursday after minutes from the Federal Reserve's latest policy meeting stoked expectations that the central bank will raise interest rates again in June.
However, the greenback trimmed its gains versus the euro after euro zone May PMI posted an unexpected rise in May, fuelling speculation that the European Central Bank
could raise interest rate by 50 basis points next week rather than just 25.
In the U.S., minutes released on Wednesday from the May 10 Fed meeting showed that policymakers were not sure how much higher rates should climb, if at all, but a mention that
inflationary pressures were increasing helped boost expectations that rates would rise.

With the ECB possibly hiking .50% and the Fed considering such a move it seems that Gordon's innaction may start to pressure the pound especially given the deteriorating employment situation coupled with a slowing housing market. The currency traders have consistently stated that HPI and high employment has been keeping the pound at high levels.

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http://abcnews.go.com/Business/wireStory?id=2027179

Reuters

However, the greenback trimmed its gains versus the euro after euro zone May PMI posted an unexpected rise in May, fuelling speculation that the European Central Bank could raise interest rate by 50 basis points next week rather than just 25.

Am I right in saying that a 0.5% increase will absolutely kill the Irish property bubble?

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Am I right in saying that a 0.5% increase will absolutely kill the Irish property bubble?

Does it make me one of these nasty bears who wishes ill on others if my immediate reaction is "I hope so"?

Billy Shears

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Am I right in saying that a 0.5% increase will absolutely kill the Irish property bubble?

Stone dead. In fact the market may be turning already.

Edited by Duplex

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Stone dead. In fact the market may be turning already.

God! If only !

I know there's been a few anecdotals over on askabout but I'm going to wait for firmer evidence before I get me hopes up

(too many false tops in the past :( )

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Stone dead. In fact the market may be turning already.

I'm not so sure. The Central Bank said yesterday that public sector credit growth increased in April to 29.6% from 29.0% in March. Mortgage credit was up 27.7%. With this incredible momentum behind it the ECB will have to stamp on the brakes very hard in order to burst the housing bubble. Still, figures from the Eurozone suggest that several interest rate hikes could be on the way, so the coming months will be interesting. But the two rate rises so far have not even dented the Irish appetite for credit, far from it.

Edited by Flash

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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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