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Interet Rates Hold Shock

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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

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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.

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


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

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  • 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%

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