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What Will Force Boe To Raise Rates

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We will NOT see IR rises unless the BOE hand is forced from external factors in my opinion:

World rates rising forces sterling to drop in value.

Credit tightening by end of Carry Trade, BOJ rates hit 2/3%

Inflation hits china, yuan appreciates imports a lot more expensive.

Otherwise BOE GordonB will just fudge figures that are local to UK like fuel, taxes etc.

what do you think will force BOE's hand?

Edited by Impartial

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Guest Alright Jack

What will make the government (or bank if you prefer) raise interest rates will be a sizeable decline of sterling against the euro or the dollar. All the currencies are in real decline (you can see this by watching the fall of nominal assets against real assets) it is just a case of the governments tweaking a bit here and there to sort of maintain the exchange rate standards. This gives the illusion of stability when, infact, we are witnessing the death of the fiat money tower of babel.

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Gordon being politely asked to leave this country B)

What i lovely thought, no more smug bullsh?t from the mir£cle man himself!!!!!!!!!!!!

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We will NOT see IR rises unless the BOE hand is forced from external factors in my opinion:

World rates rising forces sterling to drop in value.

Credit tightening by end of Carry Trade, BOJ rates hit 2/3%

Inflation hits china, yuan appreciates imports a lot more expensive.

Otherwise BOE GordonB will just fudge figures that are local to UK like fuel, taxes etc.

what do you think will force BOE's hand?

I suspect other countries IR's will determine what the uk does. Particularly if europes IR surpass those of the UK then a whole load of cash is likely to leave the UK for better returns elsewhere. If all the City were recommending raising rates then i dont think the BOE could resist.... but like the europes IR its a long way off..........

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You can fudge the figures as much as you like. But people are slowly realising that they have less and less money at the end of the month.

Down the pub the conversations are quite laughable. Heard one last night (didn't join in!) about how gas, leckie, council tax keeps going up and up.... Started talking about petrol blah blah blah. One of the crowd pipes up that Brown said that inflation was only just over 2%. "Well he can come and sort out my bills then!" Then someone said he was a w@nker and a fibber... Quite accurate really.

At this rate I don't even think it will be necessary to raise rates. Although raising rates will speed things along quite nicely IMPO.

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You can fudge the figures as much as you like. But people are slowly realising that they have less and less money at the end of the month.

Down the pub the conversations are quite laughable. Heard one last night (didn't join in!) about how gas, leckie, council tax keeps going up and up.... Started talking about petrol blah blah blah. One of the crowd pipes up that Brown said that inflation was only just over 2%. "Well he can come and sort out my bills then!" Then someone said he was a w@nker and a fibber... Quite accurate really.

At this rate I don't even think it will be necessary to raise rates. Although raising rates will speed things along quite nicely IMPO.

How True,

More and more peole i talk to including myself are spending less time down the local. I spoke to my local landlord and staff and they said business was appauling, especially considering the heatwave we are having.

Friends/colleagues at work complain they can't make ends meet unless they spend more time at home and less going out socialising and these are people on high incomes with little debt.

Designer clothes wearing friends have decided armani, gucci, Hugo Boss etc. are just too expensive clothing and have started looking at bargain sections from designer warehouses and ebay to get their designer fix. No more house of frasier.

Most are feeling the pinch, only the very well off do not see a problem as they never do with all that cash.

It's getting bad out there.

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Guest Alright Jack

You can fudge the figures as much as you like. But people are slowly realising that they have less and less money at the end of the month.

Down the pub the conversations are quite laughable. Heard one last night (didn't join in!) about how gas, leckie, council tax keeps going up and up.... Started talking about petrol blah blah blah. One of the crowd pipes up that Brown said that inflation was only just over 2%. "Well he can come and sort out my bills then!" Then someone said he was a w@nker and a fibber... Quite accurate really.

At this rate I don't even think it will be necessary to raise rates. Although raising rates will speed things along quite nicely IMPO.

It is interesting that the conversation has turned towards such things (I don't go to pubs - I'm far too mean to pay so much for something so easily made at home, also I don't like getting beat up!)

It's okay to say that people don't buy the 'inflation' numbers anymore, but how can this make a difference if they don't understand what is going on?

The only way to do anything about it is to drop the currency. Don't hold it. Like a hot potato, throw it as soon as you catch it. I just don't think people in general understand how the system works and how they can protect themselves from the abuse.

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(edit this post because my new post came live)

my landlord and some other land lords have been selling some of there properties lately and is using the money to buy abroad. i think the boe will up the rate on aug 3 2006 because interest rates around the world has gone and up m4 figures.

Edited by crash2006

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Guest Bart of Darkness

What Will Force Boe To Raise Rates, Opinions Please

A crisis?

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The only way to do anything about it is to drop the currency. Don't hold it. Like a hot potato, throw it as soon as you catch it. I just don't think people in general understand how the system works and how they can protect themselves from the abuse.

Hi Jack I have been thinking this for a while, but which currency would you buy as an alternative ?

I am no expert but I would be very nervous about putting my house deposit into the $ or the euro.

Any suggestions, and reasons why ??

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Guest Alright Jack

What Will Force Boe To Raise Rates, Opinions Please

A crisis?

YES! That's what I mean, a relative shift in exchange rates as,

1) People drop pounds (or notes) in favour of other currencies.

Very much like happened when the dollar declined by 30%, greenspan went on the charge of the light brigade. The result was to maintain the exchage rate (but the currency was no less lame)

Similarly, the reaction by our bank will only be to realign sterling against the other currencies. The REAL value of all currencies continue on towards their ultimate fate but will do it in tandem.

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Well if the boe dont raise it then i think the banks will do something because they dont have the funds to keep funding borrowing in this country, either they seduce people to save(which infact we have been seeing in tv adverts) or keep borrowing from the international area but as interest prices rise round the world that wouldnt be cheap.

Edited by crash2006

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Hi Jack I have been thinking this for a while, but which currency would you buy as an alternative ?

I am no expert but I would be very nervous about putting my house deposit into the $ or the euro.

Any suggestions, and reasons why ??

I know of 1 person who has invested his savings in Norwegian bonds (Norway has retained the kroner and not joined EU). The reasoning I understand is that, unlike most EU nations, Norway has large natural gas reserves. Norwegian oil production, while declining, is still hugely more than consumption given their low population (c 5m). Oil and gas production per capita is very adequate....and will stave off need for Norway to import energy for decades.

Given that global energy prices have been rising sharply and, with rising demand from China etc, are likely to rise further nations with long term self sufficiency in energy are among the safest bets regarding currency. Btw the person who has move his investments to Norway is a life long petroleum geologist!

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I know of 1 person who has invested his savings in Norwegian bonds (Norway has retained the kroner and not joined EU). The reasoning I understand is that, unlike most EU nations, Norway has large natural gas reserves. Norwegian oil production, while declining, is still hugely more than consumption given their low population (c 5m). Oil and gas production per capita is very adequate....and will stave off need for Norway to import energy for decades.

Given that global energy prices have been rising sharply and, with rising demand from China etc, are likely to rise further nations with long term self sufficiency in energy are among the safest bets regarding currency. Btw the person who has move his investments to Norway is a life long petroleum geologist!

and maybe a contract from russia just saw it.

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Actually if they don't raise rates, and wait too long, they may well be playing catch up, and have to raise rates higher and faster than they would have otherwise. If that happens a crash is even more likely. Either way the game is over, its not if but when. Just watch the BTL's jump off the cliff when the penny drops that at today's prices they just bought a lemon...

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