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

U K Gilts Are Falling As Bad News On Inflation Is Anticipated

Recommended Posts

http://today.reuters.co.uk/news/articleinv...ITAIN-GILTS.XML

UK gilts fall after Fed, eye UK inflation report

Wed Aug 9, 2006 8:19 AM BST139

LONDON, Aug 9 (Reuters) - UK gilt futures opened lower on Wednesday after the U.S. Federal Reserve kept interest rates for the first time in two years and ahead of the Bank of England's quarterly inflation report.
By 0715 GMT, September long gilts traded 12 ticks lower at 109.13 as there was some disappointment that one Fed policymaker had still called for a rate hike.
Investors will look to the BoE's Inflation Report for clues on whether last week's shock hike in UK rates to 4.75 percent was a one-off or the first in a series.
"There is a bit of nervousness in UK markets over what the Inflation Report will say," said Philip Shaw, chief economist at Investec.
The Bank said last week it was concerned that faster growth would keep inflation -- already half a point above its 2.0 percent target -- high for longer.

If inflation is bad again could we see another BoE hike in September?

Share this post


Link to post
Share on other sites

By 0715 GMT, September long gilts traded 12 ticks lower at 109.13 as there was some disappointment that one Fed policymaker had still called for a rate hike.

If inflation is bad again could we see another BoE hike in September?

now that would be astonishing! I very much doubt it (I fancy November myself).

Interesting that Reuters are reporting that gilts fell because *one* member of the committee voted for a hike!

I also see that the Beeb's headline is a bit skew-wiff... "Fed calls end to hike cycle" or something similar. Not "Fed pauses hike cycle" or "Fed holds rates". A bit premature perhaps? No wonder the journos keep getting surprised by hikes, they seem to have an inbuilt inability to comprehend them!

Share this post


Link to post
Share on other sites

Oh dear, the two pronged approach of the BOE to surpress demand/inflation ie wage supression through immigration and raising IR are STILL not enough

It's going to have to get a lot more painful to stop people borrowing/spending....

Edited by dnd

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.

  • 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%



×
×
  • 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.