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Dames

Inflation Back

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With the British economy still growing modestly, the Bank of England was not only right to increase rates; it should consider tightening at least one more time. Chancellor Gordon Brown’s massive public-sector budget deficit of over 3% of gross domestic product (GDP), which continues to boost total demand and stoke inflationary pressures, adds to the case for further rises. The retail price index (RPI) measure of inflation currently stands at 3.3% and the consumer price index (CPI) at 2.5%. The CPI is likely to move up significantly over the next few months because of surging gas prices and university fees, touching 2.8% by year-end, its highest level since December 1995 (the RPI could hit 3.9%, its highest level since May 1998).

IMO, BoE will be hiking at least twice more this side of Christmas.

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Guest Alright Jack
With the British economy still growing modestly, the Bank of England was not only right to increase rates; it should consider tightening at least one more time. Chancellor Gordon Brown’s massive public-sector budget deficit of over 3% of gross domestic product (GDP), which continues to boost total demand and stoke inflationary pressures, adds to the case for further rises. The retail price index (RPI) measure of inflation currently stands at 3.3% and the consumer price index (CPI) at 2.5%. The CPI is likely to move up significantly over the next few months because of surging gas prices and university fees, touching 2.8% by year-end, its highest level since December 1995 (the RPI could hit 3.9%, its highest level since May 1998).

IMO, BoE will be hiking at least twice more this side of Christmas.

Suppose they hike another two times to 5.25%. That leaves a real interest rate of about -7%.

Hmmm, should I buy sterling?????? Nope.

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IMO, BoE will be hiking at least twice more this side of Christmas.

They won't risk destabilising the housing market with too high IR - these recent miniscule rises are a bluff to supress the borrowing/spending that's raising real inflation

They'll, maybe, bump it up a notch or two and then chicken out and redefine/hide 'inflation' again if people call their bluff and continue to borrow/spend

Persoanally, I think they've let real inflation go too high - people are borrowing/spending not for luxuries - but to live day-to-day in a high inflationary environment

Edited by dnd

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With the British economy still growing modestly, the Bank of England was not only right to increase rates; it should consider tightening at least one more time. Chancellor Gordon Brown’s massive public-sector budget deficit of over 3% of gross domestic product (GDP), which continues to boost total demand and stoke inflationary pressures, adds to the case for further rises. The retail price index (RPI) measure of inflation currently stands at 3.3% and the consumer price index (CPI) at 2.5%. The CPI is likely to move up significantly over the next few months because of surging gas prices and university fees, touching 2.8% by year-end, its highest level since December 1995 (the RPI could hit 3.9%, its highest level since May 1998).

IMO, BoE will be hiking at least twice more this side of Christmas.

NOOOOOOOOOOOOO!!!!!!!!!!!!!!!!!!!!!!!!

:o

Looks like loads of people are getting caught with their pants down. What makes it worse is that they have been pooing all over them. In fact there is probably so much poo that you can't see their pants anyway.

I guess a single quarter point rise before Christmas appears to be the general consensus. As usual we will have to wait and see.

:blink:

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Persoanally, I think they've let real inflation go too high - people are borrowing/spending not for luxuries - but to live day-to-day in a high inflationary environment

Yet you think they can continue to hide inflation with fiddled figures? It's too late: they've let inflation get out of control and no amount of fiddling is going to convince people that it doesn't exist.... they'll only get it back under control with much higher interest rates and a recession.

Didn't the BoE even say that they worry more about people's perception of inflation than inflation itself? Well, I don't see many people who actually believe inflation is low these days, with 20+% increases in gas prices and petrol touching a pound a litre.

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they'll only get it back under control with much higher interest rates and a recession.

i can't see them doing this

BoE even say that they worry more about people's perception of inflation than inflation itself? Well, I don't see many people who actually believe inflation is low these days, with 20+% increases in gas prices and petrol touching a pound a litre.

yep, perception is important - ignorance of real inflation has allowed them to keep IR low

i don't think the masses yet understand 'inflation' - from my own experiences people simply continue to display their ignorance by borrowing more and moaning about how much stuff costs

i still think they can string inflation out a little more....

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  • 301 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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