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If I Were Merv I'd Do All I Could To Raise Interest

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Yep, if I were in Merv's shoes I'd be calling the inflation card and urging all the members of the MPC to raise interest rates.

That'd sort out this Labour govt who tried to stuff him over.

OK, it wouldn't do his reputation any good, but then neither is lowering rates. Damned if he does, damned if he doesn't.

But at least he'd be able to get his own back! :P

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Yep, if I were in Merv's shoes I'd be calling the inflation card and urging all the members of the MPC to raise interest rates.

That'd sort out this Labour govt who tried to stuff him over.

OK, it wouldn't do his reputation any good, but then neither is lowering rates. Damned if he does, damned if he doesn't.

But at least he'd be able to get his own back! :P

I think he should as well, also they keep saying that the previous interest rate rises have worked , blah blah blah. But it take 6 months - 2 years for changes to reach there full impact. We are yet to see the full impact of these changes and the current inflation levels are more down to circumstance and manipulation. 0.5% rise would be the way to go :lol::lol::lol:

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I think he should as well, also they keep saying that the previous interest rate rises have worked , blah blah blah. But it take 6 months - 2 years for changes to reach there full impact. We are yet to see the full impact of these changes and the current inflation levels are more down to circumstance and manipulation. 0.5% rise would be the way to go :lol::lol::lol:

Merv, I hope, will do what is best, long term, for 95% of the UK population, which is raise Interest Rates.

If he drops in October, he will have lost everything eg. his reputation as a clever man and any respect that anyone still has for himself and the BOE.

If he drops rates in October, he should resign straight away, for being completely useless at his job.

Brown & Darling must know dropping rates will finish them and NuLabour?

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Merv, I hope, will do what is best

Unfortunately Merv is just one member of the MPC. And whilst he has *some* additional influence as Governor, it will, as always, come down to a vote.

Whatever the decision on 4 Oct, it'll be very interesting to get hold of the minutes later in the month.

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Unfortunately Merv is just one member of the MPC. And whilst he has *some* additional influence as Governor, it will, as always, come down to a vote.

Whatever the decision on 4 Oct, it'll be very interesting to get hold of the minutes later in the month.

I wonder what the MPC members thought of Merv's grilling? I'll bet a few of them weren't happy with it, especially as they are helping vote for the decisions that ultimately helped the HPI and ultimately Northern Rockinahardplace's situation.

So I call on every one of the MPC members to side with Merv and raise those interest rates.

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Of course the correct move would probably be 'masterly inaction' which would mean leaving interest rates on hold because moving them either up or down is likely to spook the markets. A rise might be deemed prudent to fight inflation but it is not going to help Brown fight an election and you can be sure he has enough 'votes' on the MPC to ensure it does not happen. Historically Sterling has been a loser currency with a nasty tendency for sudden devaluations that leave overseas investors in UK gilts out of pocket. Because past British governments have often tried to use inflation to bail themselves out of the debt holes they have dug for the country, UK PLC usually pays a premium to borrow money. That is one of the reasons our interest rates have always been about 1% above the rest of the EURO zone. If the MPC decide to slash rates ( with or without Merv's approval) then a lot of the hot money invested in the City may just up sticks and move out of London never to return. In the long run that might prove to be as fatal to Brown's government as any run on a UK bank. I expect that we will see our supposedly 'independent' BOE go for an early rate cut which will be shortly afterwards followed by a snap general Election. We will then spend the next five years reaping the consequences of this folly. Strangely, the only thing I can see saving us from this scenario is more trouble in the currency and stock markets during October which might give the politicians cold feet.

Edited by up2nogood

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Money deposited in London (presumably by foreign investors) I've read (but can't find the link) has dramatically expanded over the last decade... to the extent that in 2006 some 5% of the world's money was deposited in our capital.

Can anyone think how this half-remembered fact could be verified?

If this is fact, and the reason is our relatively high interest rate, can we establish the likely consequences of this money being moved elsewhere?

What advantage is it to the UK to have substantial private foreign funds deposited in London?

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