piece of paper Posted September 18, 2007 Share Posted September 18, 2007 Does anyone know whether this is the first time that CPI and RPI have dislocated so much that they are heading in different directions? p-o-p Quote Link to comment Share on other sites More sharing options...
muggle Posted September 18, 2007 Share Posted September 18, 2007 Words fail me :angry: Quote Link to comment Share on other sites More sharing options...
dirge Posted September 18, 2007 Share Posted September 18, 2007 a rate cut? jesus christ thats just smashing. :angry: Quote Link to comment Share on other sites More sharing options...
Tonester Posted September 18, 2007 Share Posted September 18, 2007 RPI going up is good for NS&I index linked accounts at least! Quote Link to comment Share on other sites More sharing options...
Guest Shedfish Posted September 18, 2007 Share Posted September 18, 2007 I predict this thread will reach 5 pages if it did, and the moderators kept changing the number of posts per page so that it never ran to more than 4, where would we be? Quote Link to comment Share on other sites More sharing options...
Gone baby gone Posted September 18, 2007 Share Posted September 18, 2007 The CPI value is now better entertainment value that 99.8% of TV programmes! 1.8% Hilarious! Quote Link to comment Share on other sites More sharing options...
Flat Bear Posted September 18, 2007 Share Posted September 18, 2007 The doomsday party is over. The car crash that was Northern Rock and Alliance and Leicester is nearly over and confidence is returning to the market. A&L shares rallied 25% on the market opening. BoE has pumped billions into the system to restore liquidity. Normal business will resume soon. I will say that the events of the last week have been a shot across the bows for the financial sector and may have installed a bit of reality on how crazy things have gone with easy credit. I predict a calming of house prices but the predictions of a crash and 50% off were a wee bit premature (someone said 70% ) Rip up your rent books boys. Home ownership is here to stay You are michael Fish and I claim my cod. Quote Link to comment Share on other sites More sharing options...
OzzMosiz Posted September 18, 2007 Share Posted September 18, 2007 More lies! Quote Link to comment Share on other sites More sharing options...
Zzzzzzzzzzzzzzzzzzzzzzzzzz Posted September 18, 2007 Share Posted September 18, 2007 The doomsday party is over. The car crash that was Northern Rock and Alliance and Leicester is nearly over and confidence is returning to the market. A&L shares rallied 25% on the market opening. BoE has pumped billions into the system to restore liquidity. Normal business will resume soon. I will say that the events of the last week have been a shot across the bows for the financial sector and may have installed a bit of reality on how crazy things have gone with easy credit. I predict a calming of house prices but the predictions of a crash and 50% off were a wee bit premature (someone said 70% ) Rip up your rent books boys. Home ownership is here to stay I will say that this is one of the most ridiculous posts I have ever read. Quote Link to comment Share on other sites More sharing options...
Guest Bart of Darkness Posted September 18, 2007 Share Posted September 18, 2007 1.8% Utter nonsense. Quote Link to comment Share on other sites More sharing options...
Its time to buy Posted September 18, 2007 Share Posted September 18, 2007 Oh come on do you really expect anything different? The goverment = you keep paying your taxes, status quo kept as long as possible. Tax payers should be seen and not HEARD! Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted September 18, 2007 Share Posted September 18, 2007 It doesnt matter what the CPI is reported as, inflation doesnt know its being measured, so it doesnt care. What is important is that inflation is controlled- Quote Link to comment Share on other sites More sharing options...
hedgefunded Posted September 18, 2007 Share Posted September 18, 2007 Joke. Have these people not bought food or fuel recently? Quote Link to comment Share on other sites More sharing options...
Methinkshe Posted September 18, 2007 Share Posted September 18, 2007 fell due to a reduction in mortgage exit fees and clothing. No wonder the government were keen to outlaw the exit fees!!!! Am I correct in believing that mortgage repayments are not included in CPI? If so, how come mortgage exit fees are? Quote Link to comment Share on other sites More sharing options...
Guest The_Oldie Posted September 18, 2007 Share Posted September 18, 2007 The CPI figures are a joke. My (outraged) wife just phoned me, having seen the news. She shops every day and sees prices relentlessly rising on food and general household necessities and can not understand how the CPI can have dropped. Quote Link to comment Share on other sites More sharing options...
sign_of_the_times Posted September 18, 2007 Share Posted September 18, 2007 Am I correct in believing that mortgage repayments are not included in CPI? If so, how come mortgage exit fees are? because only things going down in price are included in cpi........pay attention ! Quote Link to comment Share on other sites More sharing options...
Matt Bear Posted September 18, 2007 Share Posted September 18, 2007 Am I correct in believing that mortgage repayments are not included in CPI? If so, how come mortgage exit fees are? Strikes me as bizarre to. Quote Link to comment Share on other sites More sharing options...
starsign Posted September 18, 2007 Share Posted September 18, 2007 I will say that this is one of the most ridiculous posts I have ever read. by "rediculous posts" I presume you mean it offers a different view from what you believe. I can't help but think it has been over-hyped in the media and on here. Quote Link to comment Share on other sites More sharing options...
MarkyB Posted September 18, 2007 Share Posted September 18, 2007 Am I correct in believing that mortgage repayments are not included in CPI? If so, how come mortgage exit fees are? Couldn't agree more, and just said the exact same thing to my boss about 30 mins ago. He looked at me puzzled and fluxxed. He is also the MD, and has a very good economics background! Quote Link to comment Share on other sites More sharing options...
OzzMosiz Posted September 18, 2007 Share Posted September 18, 2007 (edited) Am I correct in believing that mortgage repayments are not included in CPI? If so, how come mortgage exit fees are? Because it has dropped? It's all a con! Edited September 18, 2007 by OzzMosiz Quote Link to comment Share on other sites More sharing options...
Ducardo Posted September 18, 2007 Share Posted September 18, 2007 The doomsday party is over. The car crash that was Northern Rock and Alliance and Leicester is nearly over and confidence is returning to the market. A&L shares rallied 25% on the market opening. BoE has pumped billions into the system to restore liquidity. Normal business will resume soon. I will say that the events of the last week have been a shot across the bows for the financial sector and may have installed a bit of reality on how crazy things have gone with easy credit. I predict a calming of house prices but the predictions of a crash and 50% off were a wee bit premature (someone said 70% ) Rip up your rent books boys. Home ownership is here to stay At last a bit of sanity on here, I think the uber bears need to take some more medication! Quote Link to comment Share on other sites More sharing options...
benj Posted September 18, 2007 Share Posted September 18, 2007 Personally I think this is a stroke of luck for the Bank of England. There are some long-term inflationary pressures on the horizon, and the BoE is aware of them. If you look in their minutes, you'll see that they spend a lot of time talking about the future direction of employment and inflation, and don't just take a short-term view based on the current month's economic readings. I believe that in the medium term - i.e. over the next few years - interest rates are going to have to rise. But right now, it may well be that the only way to sort out this mess in the banking sector is for the BoE to cut short-term rates. The country needs a robust banking system. The divergence of interbank rates from the Bank's base rate is a clear sign that the banks are learning their lesson, and starting to price risk appropriately. A quarter-point cut this month might ease some of the stresses and help to return the system to normality. Given the goings-on of the past month or so, it would be ludicrous to believe that such a move was an attempt to re-inflate the credit bubble. That bubble is history. The loosening would not filter through to mortgage rates in any significant way. It would not be a repeat of the August 2005 scenario. It really is different this time. Assuming Mervyn King remains in control at the Bank, I would not be surprised to see a 25 basis point cut either this month or next, accompanied by a stern statement explaining that this is a temporary and exceptional measure. That this does not set a new trend in the direction of interest rates. That rates are likely to return to 5.75% within a few months, when some order has returned to the credit markets. This CPI reading gives the Bank a slim window of opportunity to sneak in a temporary rate cut, to help get the money markets back on their feet without too much risk of re-igniting the consumer credit forest-fire. On balance, it may well be the right thing for them to do. Quote Link to comment Share on other sites More sharing options...
It is different this time Posted September 18, 2007 Share Posted September 18, 2007 The CPI figures are a joke. My (outraged) wife just phoned me, having seen the news. She shops every day and sees prices relentlessly rising on food and general household necessities and can not understand how the CPI can have dropped. I agree I remember my wife saying recently that the milk has gone up a lot! yeap from £1.08 to £1.34 that is a 24% rise. IMO It is the most corrupted government, financially, we have ever seen. 1.8%? glad they didn’t come up with 0.8% you know it could have been worse! Quote Link to comment Share on other sites More sharing options...
Methinkshe Posted September 18, 2007 Share Posted September 18, 2007 Personally I think this is a stroke of luck for the Bank of England.There are some long-term inflationary pressures on the horizon, and the BoE is aware of them. If you look in their minutes, you'll see that they spend a lot of time talking about the future direction of employment and inflation, and don't just take a short-term view based on the current month's economic readings. I believe that in the medium term - i.e. over the next few years - interest rates are going to have to rise. But right now, it may well be that the only way to sort out this mess in the banking sector is for the BoE to cut short-term rates. The country needs a robust banking system. The divergence of interbank rates from the Bank's base rate is a clear sign that the banks are learning their lesson, and starting to price risk appropriately. A quarter-point cut this month might ease some of the stresses and help to return the system to normality. Given the goings-on of the past month or so, it would be ludicrous to believe that such a move was an attempt to re-inflate the credit bubble. That bubble is history. The loosening would not filter through to mortgage rates in any significant way. It would not be a repeat of the August 2005 scenario. It really is different this time. Assuming Mervyn King remains in control at the Bank, I would not be surprised to see a 25 basis point cut either this month or next, accompanied by a stern statement explaining that this is a temporary and exceptional measure. That this does not set a new trend in the direction of interest rates. That rates are likely to return to 5.75% within a few months, when some order has returned to the credit markets. This CPI reading gives the Bank a slim window of opportunity to sneak in a temporary rate cut, to help get the money markets back on their feet without too much risk of re-igniting the consumer credit forest-fire. On balance, it may well be the right thing for them to do. Short term, it probably is the right thing to do. But I can't help thinking that it is just a postponement of the inevitable and, worse still, that when the inevitable does happen, these short-term adjustments will have added to the long-term fall-out. The day of reckoning cannot be postponed indefinitely - debt cannot compound faster than income for ever - so why not just bite the bullet and take the deflationary medicine that is long overdue? It has to be because there is a General Election in the offing. Quote Link to comment Share on other sites More sharing options...
Smarter than the average bear Posted September 18, 2007 Share Posted September 18, 2007 I would not be surprised to see a 25 basis point cut either this month or next, accompanied by a stern statement explaining that this is a temporary and exceptional measure. That this does not set a new trend in the direction of interest rates. That rates are likely to return to 5.75% within a few months, when some order has returned to the credit markets. Back to 5.0% or less within 12 months. I'd bet my mortgage on it. Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.