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Pmi Much Higher Than Expected

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PMI much higher than expected

LONDON (Reuters) - Manufacturing activity grew at its fastest pace in almost two years in June as price pressures increased, a survey showed on Monday, boosting expectations of an interest rate hike before the end of the year.

....Short sterling rate futures fell and the pound rose as investors speculated the Bank of England would raise borrowing costs further out, although no change in rates from the current 4.5 percent is expected this week.

"We fully expect rates to stay on hold this time around but there does appear to be some pressure on the Monetary Policy Committee to look at the case for higher rates over the next couple of months," said Philip Shaw, chief economist at Investec.

All 47 economists polled by Reuters last week predicted the Bank of England committee would leave rates on hold for the 11th month running when it concludes its two-day meeting on Thursday.

Read-As. BoE sit like rabbits caught in the headlights, while Brown and ONS fiddle the stats and rearrange the CPI basket

Still, energy and raw material costs continued to climb, with the input prices index up at 67.5, the sharpest pace of increase in 17 months, from 67.1.

But prices at the factory gate also rose as firms tried to cover their costs, pushing the output prices index up to 54.6, a three-month high.

Inflation? Here? In the UK? how very dare you!

Edited by jp1

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Hilarious

How can that be? does that mean IR's may go higher than we thought?

This has been starring us in the face for the last 9 months and oh look suddenly we have inflation where did that come from what a shock.

I guess 'its not different this time.' :lol::D

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"Inflation stuff"? What is this "inflation" of which you speak?

not sure - I hear they have it in other parts of the world

Thankfully Gordon and his prudence wouldnt allow such things into Britain

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6.0% base rate could be arriving in the UK sooner than you think

Roger Bootle member of shadow MPC was only quoted at the weekend as saying theres still a chance rates could be cut later in the year!!!!!!!!!!!!!! what a complete and utter baffoon

Is there some way he could be stripped of his economics qualifications and made to retrain, some poor souls may have been taken in by his 3% IR predictions and are facing a very uncertain future. Thanks Rog.

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6.0% base rate could be arriving in the UK sooner than you think

Roger Bootle member of shadow MPC was only quoted at the weekend as saying theres still a chance rates could be cut later in the year!!!!!!!!!!!!!! what a complete and utter baffoon

Is there some way he could be stripped of his economics qualifications and made to retrain, some poor souls may have been taken in by his 3% IR predictions and are facing a very uncertain future. Thanks Rog.

I find it surprising that people expect economists to have one 'correct' and rational viewpoint. Saying someone is an economist is like saying someone is a politician. They have widely varying views on the economy, many completely stupid [Ed Balls, David Smith, Steven Nickell], some insightful

It infuriates me when BBC quote some VI crap by tagging "Howard Archer, economist at BBP BlahBlah said...", mights as well say "The economy is great says NuLabour poltician"

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6.0% base rate could be arriving in the UK sooner than you think

Roger Bootle member of shadow MPC was only quoted at the weekend as saying theres still a chance rates could be cut later in the year!!!!!!!!!!!!!! what a complete and utter baffoon

Is there some way he could be stripped of his economics qualifications and made to retrain, some poor souls may have been taken in by his 3% IR predictions and are facing a very uncertain future. Thanks Rog.

Could'nt agree more how he keeps any client is a mystery.

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BBC's take on it:

http://news.bbc.co.uk/1/hi/business/5141754.stm

Rate fears rise on factory data

Strong UK manufacturing data boosts rate rise prospects
Economic statistics released on Monday have boosted the chances of an interest rate rise by the end of the year.
A key index of factory activity has grown at the fastest pace for nearly two years in June.
This has increased pressure on prices and adds to the belief that the Bank of England will raise rates.

With the world having moved along quite a way since Gordon cut rates to boost HPI last year he may not have the luxury of waiting until the end of the year to try to make the required IR U-turn. In any event, the Yen Carry trade may make his decisions academic as far as the real market rates are concernd.

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Why does the BBC release that news report at 17:09 when the report came out this morning? Most people read the BBC website in the day, such as during their lunch hour. But I bet it gets shoved off to the side links by midday tomorrow. Don't want to upset the sheeple do we...

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Manfacturing activity rising at fastest pace in two years.....doesn't sound like the great depression to me :) Service sector especially the city is booming and manufacturing doing well again

Great how you bears spin this stuff .....

Edited by mercsl

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Manfacturing activity rising at fastest pace in two years.....doesn't sound like the great depression to me :) Service sector especially the city is booming and manufacturing doing well again

Great how you bears spin this stuff .....

are you a bit thick?

No one is suggesting that where in a depression,

But some belive we could be on the verge of one.

you see the way it works is people spend & borrow too much money for too long – prices go up (too much) – and then BANG.

So this news would increase the chances (slightly) of a future depression.

Thanks for your opinion though :blink:

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Manfacturing activity rising at fastest pace in two years.....doesn't sound like the great depression to me :) Service sector especially the city is booming and manufacturing doing well again

Great how you bears spin this stuff .....

think u missed the point - things going well so up IRs - like in the u.s. where as a result houses are now being repossesed and prices are falling

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Why does the BBC release that news report at 17:09 when the report came out this morning? Most people read the BBC website in the day, such as during their lunch hour. But I bet it gets shoved off to the side links by midday tomorrow. Don't want to upset the sheeple do we...

I knew it.

News item conveniently moved off to the side link, and it's only 7am...

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I knew it.

News item conveniently moved off to the side link, and it's only 7am...

Of course - The BBC is licenced to only report positive news

"Tractor production up by 300%!" : Gordon Brown

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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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