Jump to content
House Price Crash Forum
Sign in to follow this  
cocacolalight

Interet Rates Hold Shock

Recommended Posts

The trouble with targeting inflation or price levels with interest rates is that interest rates shift both aggregate demand and aggregate supply in the same direction simultaneously. Lower interest rates stimulate demand by increasing debt-based consumption, but they also stimulate supply by encouraging investment. Higher rates stifle demand, but also supply by cutting back on investment in factories and equipment.

from Silicon Investor

Perhaps raising rates will do nothing to lower inflation. To control prices you need a lever which shifts either supply or demand, but interest rate changes shift both together. You have to predict which one will be most effected by a change in the rates.

Edited by The Colour

Share this post


Link to post
Share on other sites

Interest Rates Hold SHOCK!!!! SHOCK?????

What SHOCK??

Pound holding its own against a dollar even with ongoin Yank base rate rises. And you expected a RISE?

You were lucky you didn't get a fall.

Share this post


Link to post
Share on other sites

Times issues an emergency sell everything warning a' la corporal Jonesey:

http://business.timesonline.co.uk/article/...2258693,00.html

Times Online July 06, 2006

No panic required as house prices fall :blink::o:unsure::o

The sudden drop in house prices is likely to shock. Gabriel Rozenberg, The Times' Economics Reporter, says it is not time to panic
According to Halifax, house prices suffered their biggest one-month drop in June for more than five years. That might sound alarming to some. It is not.
First of all, the drop - of 1.2 per cent - is significant, but not massive. In April Halifax reported a rise of 2 per cent, which was followed by a 0.1 per cent fall in May. So prices are still up over the quarter as a whole, by 0.6 per cent.

Don't panic, don't panic...................... :o

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 333 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%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.