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Boe Divided Over Interest Rates

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As I said in another thread:

Political voting or what!!!!!

The Governor invited the Committee to vote on the proposition that Bank Rate should be
maintained at 5.5%
. Five members of the Committee (Rachel Lomax, Kate Barker, Charles Bean,
David Blanchflower and Paul Tucker) voted in favour of the proposition.
The Governor
, John Gieve,
Tim Besley and Andrew Sentance
voted against, preferring an increase in Bank Rate of 25 basis
points.

The governor invited the commitee that the repo rate stay unchanged, but then voted for a hike himeself!

So, it looks like Merv wanted the rate to stay the same, but didn't want to show himself as a dove!

Still, higher ratio that I thought voting for a rise.

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Shot across the bows, maybe, warning to public, we are thinking along the lines of upping in July, or maybe August?

Merv certainly is maybe sitting on the fence?

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Shot across the bows, maybe, warning to public, we are thinking along the lines of upping in July, or maybe August?

Merv certainly is maybe sitting on the fence?

Betfair has rise as 1.27 now, people are betting on a rise next month.

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Money supply figures - dreadful again.

I wouldn't trust the BOE with the contents of my piggy bank, let alone trust them with inflation control.

http://www.rttnews.com/forex/economicnews....007&item=15

U.K M4 Money Supply, M4 Lending Grow In May

6/20/2007 5:41:24 AM U.K M4 money supply grew GBP18.1 billion in May, the Bank of England said Wednesday. M4 broad money climbed seasonally adjusted 1.2% on month, smaller than 1.3% last month. M4 annual growth accelerated to 13.8% from 13.3% last month.

M4 lending showed an annual growth of 13.3%, larger than 12.9% in April. Compared to last month, M4 lending grew 1.2% or GBP23.6 billion.

M4 lending, excluding the effects of securitization, gained 1.6% on month. M4 lending increased 14.7% annually, larger than 13.8% in April.

Edited by OnlyMe

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But I thought that money supply and interest rates had an inversely proportional relationship.

So wouldnt we want to be seeing supply going down to force upwards pressure on rates?

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But I thought that money supply and interest rates had an inversely proportional relationship.

So wouldnt we want to be seeing supply going down to force upwards pressure on rates?

Doubt there will be much appetite to borrow if the rates keep going up.

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But I thought that money supply and interest rates had an inversely proportional relationship.

So wouldnt we want to be seeing supply going down to force upwards pressure on rates?

They are WAY behind the curve, they do not want to control inflation, they have given up on that one.

6.GIF

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Gordon was observed at the mint recently manically watching the printing presses and was overheard telling Sid Smith, chief printer, to give it more power as he needs more money to meet the debt he has run up over the miracle years. Sid apparently said "aye aye captain but I am already at warp speed." Taken as an anti-Scot jibe Gordon promptly told Sid he was fired for making fun of him.

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b]The Governor invited the Committee to vote on the proposition that Bank Rate should be

maintained at 5.5%[/b]. Five members of the Committee (Rachel Lomax, Kate Barker, Charles Bean,

David Blanchflower and Paul Tucker) voted in favour of the proposition. The Governor, John Gieve,

Tim Besley and Andrew Sentance voted against, preferring an increase in Bank Rate of 25 basis

points.

The governor invited the commitee that the repo rate stay unchanged, but then voted for a hike himeself!

So, it looks like Merv wanted the rate to stay the same, but didn't want to show himself as a dove!

Still, higher ratio that I thought voting for a rise.

As the 'chair' of the committee, the governor canvasses the opinions of the members, then always 'invites' the committee to vote on whatever the majority rate proposal is. The act of inviting the members to vote doesn't reflect his own opinion. By voting against the proposition, Merv quite clearly showed that he wanted rates to rise.

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They are WAY behind the curve, they do not want to control inflation, they have given up on that one.

Thats a good chart, see your point. Thanks for that.

RB...lol

cheers.

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Thats a good chart, see your point. Thanks for that.

RB...lol

cheers.

Have to agree great chart there Only ME , the sort that should be on the front page it says it all , just checked betfair myself now 1.5 a rise :) , those minutes sent the price crashing , luverlly jubbly ................

And theres up to a million from now till year end coming off there fixed rate mortgages ........oh dear :lol:

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Gordon was observed at the mint recently manically watching the printing presses and was overheard telling Sid Smith, chief printer, to give it more power as he needs more money to meet the debt he has run up over the miracle years. Sid apparently said "aye aye captain but I am already at warp speed." Taken as an anti-Scot jibe Gordon promptly told Sid he was fired for making fun of him.

:lol: faster Siddy faster, sorry Gordy we cannot go any faster, private joke from years ago! ;) Very good RB! :lol:

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Political voting or what!!!!
The Governor invited the Committee to vote on the proposition that Bank Rate should be
maintained at 5.5%
. Five members of the Committee (Rachel Lomax, Kate Barker, Charles Bean,
David Blanchflower and Paul Tucker) voted in favour of the proposition.
The Governor
, John Gieve,
Tim Besley and Andrew Sentance
voted against, preferring an increase in Bank Rate of 25 basis
points.

The governor invited the commitee that the repo rate stay unchanged, but then voted for a hike himeself!

That's interesting but not surprising as already posted on another thread 'He & his gang are not competent enough to deliver what it takes' but surely it is scandalous to suggest something then vote against it! Either you stand behind your word or you don't open your mouth.

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They are WAY behind the curve, they do not want to control inflation, they have given up on that one.

6.GIF

So basically around September 2001 the BOE should have started to raise rates to quash money growth. Instead 9/11 happened and rates were dropped madly to stave off recession. Why is recession seen as so bad? Is it not an essential re-balancing of the economy?

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Gordon was observed at the mint recently manically watching the printing presses and was overheard telling Sid Smith, chief printer, to give it more power as he needs more money to meet the debt he has run up over the miracle years. Sid apparently said "aye aye captain but I am already at warp speed." Taken as an anti-Scot jibe Gordon promptly told Sid he was fired for making fun of him.

:lol::lol:

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I was fairly certain rates would not be up till August

I now think July is a real possibility

Will BoJ raise in July or August? Im sure it will be one or the other.

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As the 'chair' of the committee, the governor canvasses the opinions of the members, then always 'invites' the committee to vote on whatever the majority rate proposal is. The act of inviting the members to vote doesn't reflect his own opinion. By voting against the proposition, Merv quite clearly showed that he wanted rates to rise.

So, the governor just advises what the majority think, and isn't his own opinion?

I have to say I didn't know that, I assumed it would be what he thought after listening to everyone's opinions, then advising what to do as he's the top dog. Do you have a link to why the chair of the committee advises?

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Why is recession seen as so bad?

Because NuLab would have lost the next election and Brown would never have got into Number 10.

Is it not an essential re-balancing of the economy?

Yes. But it loses elections, so democratic governments will do anything to avoid a recession even if it makes things much, much worse in the long term.

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I was fairly certain rates would not be up till August

I now think July is a real possibility

Will BoJ raise in July or August? Im sure it will be one or the other.

I'm thinking they may break their .25% rise per three month average! ;)

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