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Rumblings Of Rate Cut In The Uk....


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get your Gold/CHFs/Euros/CADs quick before the value of the pound goes through the floor!! :o

Seriously, if they reduce the interest rates I recon the Pound will end up worse than the Dollar as it's not even an important reserve currency.

Edited by not_DrBubb
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get your Gold/CHFs/Euros/CADs quick before the value of the pound goes through the floor!! :o

Seriously, if they reduce the interest rates I recon the Pound will end up worse than the Dollar as it's not even an important reserve currency.

I don't think the Fed would have cut by 1/2 point if it did not have the cooperation of other central banks to do the same or at least 1/4. This competitive devaluation by other central banks should put the brakes on the dollar sliding off the cliff.

The media will start spouting stuff about inflation contained blah blah, and voila you have the cut required.

The British public who are in debt up to their eyeballs will dance in the street, and Brown will seen to be a hero.

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I don't think the Fed would have cut by 1/2 point if it did not have the cooperation of other central banks to do the same or at least 1/4. This competitive devaluation by other central banks should put the brakes on the dollar sliding off the cliff.

The media will start spouting stuff about inflation contained blah blah, and voila you have the cut required.

The British public who are in debt up to their eyeballs will dance in the street, and Brown will seen to be a hero.

You might be right about the BoE and possibly the ECB but the Swiss Central Bank has just risen it's rate again a few days ago, as it had hinted months ago, without regards to the current market turmoil. Also it has raised it's inflation expectations for Switzerland so it will likely raise rates again next quarter.

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This is all looking very ominous - we are now at the real 'horns of a dilima'.

First if you do not have a house and have the money to buy a house then you face the real chance that your money will be eroded away by inflation - these muppets are signalling a repeat of 2005 to bolster the market one more time - since the medicine seemed to work then - or at least put off the inevitable - they will try it again.

Second if you do have a house and excessive debt then you face the real possibility of an economic mishap that will more than likely mean that you will lose your house and end up bankrupt.

Either way you are in trouble - this government (and central bankers) are forcing all people into debt prison in order to support the markets - by making money worthless they have stolen the savings of those hard working people they cliam to represent by eroding its value.

This is all going to end badly - I am tending to agree with GF and others that gold is the best bet - but I still think that if the CB's and Governments of this world are so devisive then they will not have a problem with confiscation.

HAL

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get your Gold/CHFs/Euros/CADs quick before the value of the pound goes through the floor!! :o

Seriously, if they reduce the interest rates I recon the Pound will end up worse than the Dollar as it's not even an important reserve currency.

but can i spend gold/chf/euros/cads in tesco?!!!!

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If there is a cut in the BoE it will not mean that the cost of borrowing has actually fallen. With the credit crunch, it has resulted in an increase in the cost of borrowing. Any cut in BoE rate will have been offset by the markets own increase in rates.

If the cost of borrowing had not increased, i dont believe the BoE would have touched the rates. In light of recent events, a cut is a 50% possibility

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Yep - noticed even "the Sun" of which allot here say is the paper that matters when it comes to the "sheeple" was reporting about the fed rate cut and gave their opinion that the Uk will probably follow likewise soon ;)

http://www.thesun.co.uk/article/0,,2005300...7430463,00.html

Edited by ragingbull
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Another 2005 style rate cut was inevitable at some point in the downturn.

The only surprise is that is may be forced upon them so early, when the HPI is still high.

If they throw their 'Joker' into the storm now, they limit it's impact, and may weaken the effect or altogether make impossible another '2005 style' future action.

More panic, less time till impact.

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Lots of posters on this site have been going on about the only was for IRs is upwards because of inflation its impossible to do anything else those posters might just look a little silly if it does come down which to me seems likely at the moment

what should be done and what will be done are different things.

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Lot’s of posters on this site have been going on about the only was for IR’s is upwards – because of inflation it’s impossible to do anything else – those posters might just look a little silly if it does come down – which to me seems likely at the moment

Merely shows how dysfunctional our economy is when CPI statistics have to be manipulated whilst inflation is allowed to rocket mainly due to short term political considerations more than anything else. In fact this has allowed to go on for so long that as a result of their lax attention building risk in the system that the financial overssers see it as being proper to bail out utterly profligate, risk taking lenders. When central banks and politicians through out the rule, private enterprise follows and puts the heat back on them and sometimes enough to then force their hand into compound the problems of their own making.

Lets see what happens to interst rates when the public are subjected to rising double digit inflation (hidden or otherwise) over say a period of a year or two, they will be baying for blood.

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Lot’s of posters on this site have been going on about the only was for IR’s is upwards – because of inflation it’s impossible to do anything else – those posters might just look a little silly if it does come down – which to me seems likely at the moment

not as silly as those who took out mortgages at the wrong time

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The British public who are in debt up to their eyeballs will dance in the street, and Brown will seen to be a hero.

Unfortunately you are right.

People underestimate Brown at their peril. He will be PM for 15 years.

History will view Tony Blair as Gordon Brown's warm-up act.

Edited for lousy puntuation.

Edited by Mr Yogi
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Lot’s of posters on this site have been going on about the only was for IR’s is upwards – because of inflation it’s impossible to do anything else – those posters might just look a little silly if it does come down – which to me seems likely at the moment

Yes I agree it does look possible and if they do cut rates it will be a big mistake imo as it will further fuel an increase in borrowing. Vince Cable and David Cameron for all his unpopularity have called it right. We are in the precarious position we are in now due to 10 years of cheap borrowing so what is the B of E thinking of now cutting rates to further increase the liabilties of the UK Balance Sheet and artificially keep this boom rising.

Manufacturing in the UK is strong, unemployment low and house prices still rising. There may have been a few small falls in certain parts of the country but I am sure we agree that overall prices are still rising therefore there is no real requirement to cut rates except for the isolated Northern Rock incident caused by a business' high risk strategy which saw an opportunity and decided to increase its mortgage borrowing by over 50% in only 8 months. This was a reckless strategy and bound to end badly. The CEO is at fault imo and there is only one outcome possible for him.

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I thought the BoE were supposed to look at inflation 2 years ahead? This is there excuse when inflation goes over target - but is forgotten when they cut rates to boost the housing market. With rising oil and food prices I can't see inflation remaining this low for long.

(I'm NOT a f ing troll)

i dont think anyone here believes the 1.8% anyway. A cut is virtually guaranteed. The US have cut a lot, and now are expecting us and the EU to follow suit in an attempt to prop up the dollar whilst i heads over a cliff.

Like you say, if they are looking two years ahead, then surely they should put rates up? Surely they can see what's coming?

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Guest AuntJess
Yes I agree it does look possible and if they do cut rates it will be a big mistake imo as it will further fuel an increase in borrowing. Vince Cable and David Cameron for all his unpopularity have called it right. We are in the precarious position we are in now due to 10 years of cheap borrowing so what is the B of E thinking of now cutting rates to further increase the liabilties of the UK Balance Sheet and artificially keep this boom rising.

Manufacturing in the UK is strong, unemployment low and house prices still rising. There may have been a few small falls in certain parts of the country but I am sure we agree that overall prices are still rising therefore there is no real requirement to cut rates except for the isolated Northern Rock incident caused by a business' high risk strategy which saw an opportunity and decided to increase its mortgage borrowing by over 50% in only 8 months. This was a reckless strategy and bound to end badly. The CEO is at fault imo and there is only one outcome possible for him.

Have you a link for that? I got the impression that manufacturing in the UK was dead in the water.

Also where I am, house prices have either stagnated or are dropping. :blink: ....and where I used to live as well....and where my aunty lives. ^_^

Where is this "overall" that prices are still rising?

Edited by AuntJess
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Guest AuntJess
i dont think anyone here believes the 1.8% anyway. A cut is virtually guaranteed. The US have cut a lot, and now are expecting us and the EU to follow suit in an attempt to prop up the dollar whilst i heads over a cliff.

Like you say, if they are looking two years ahead, then surely they should put rates up? Surely they can see what's coming?

Psychopaths are renowned for their lack of foresight and impulsive behaviour. Need I say more....? :o

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I thought the BoE were supposed to look at inflation 2 years ahead? This is there excuse when inflation goes over target - but is forgotten when they cut rates to boost the housing market. With rising oil and food prices I can't see inflation remaining this low for long.

(I'm NOT a f ing troll)

I completely agree and the fact that the RPI has risen from 3.8% to over 4% when the CPI has fallen just shows what a discredited measure the CPI is.

No wonder there is unrest in the public sector, although I do not have too much sympathy due to the golden pension still on offer.

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not as silly as those who took out mortgages at the wrong time
or those who have just STR'ed -

it's possible cutting IR's is the only way to keep people buying - this bubble may have only just started - question what is safer a house or the £ - the house is only 25% ish overvalued - I don't know about the £

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