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Brown And Darling Try To Nobble Rates Setting Committee


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Unbelievable

The following items appeared on the Reuters screen earlier today (January 8, 2008):

• 12:09 08Jan2008 RTRS-UK'S BROWN SAYS BY THE END OF THE YEAR BELIEVES INFLATION WILL BE AROUND 2 PCT

• 12:31 08Jan2008 RTRS-UK'S DARLING SAYS WILL DECIDE ON REAPPOINTMENT OF BOE GOVERNOR IN NEXT FEW WEEKS

• 12:35 08Jan2008 RTRS-UK'S DARLING SAYS POSITION OF STABILITY IN ECONOMY HAS GIVEN BOE MPC ROOM FOR MANOEUVRE

I could not believe my eyes. Are they mad or are the Prime Minister and the Chancellor of the Exchequer really trying to nobble the Monetary Policy Committee of the Bank of England through coordinated messages at a joint press conference, two days before a rate setting meeting of the MPC?.

Full transcript here

http://blogs.ft.com/maverecon/2008/01/et-v...ti-th.html#more

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There's more... 60% chance of a rate cut say the markets... (I'd love to know how they work that out...)

http://uk.reuters.com/article/stocksNews/i...0080109?sp=true

Betfair's been a fairly good predictor for many months and they're saying roughly 50:50 (1.95) for both a hold and a quarter-cut.

Factor in the retail result today and the shortening trend (1/4 cut was 2.8 at end of last of week) and you can see that 55ish% chance of a cut is something like what the betting market expects. ;)

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Brown's antics have destroyed CPI and RPI as reliable measures of inflation and neither they, nor the BoE base rate, bear any relation to what's happening in the real world. Frankly I couldn't give a stuff anymore.

Now he's trying to destroy the so called independence as well with his partner in crime

Edited by Lorian
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please tell, how can they cut rates with the £ collapsing??????????????

They shouldn't, but they're not interested in inflation, they want to bail out the banks and the highstreet, and house prices.

It's not good enough that the Banks should have to profit by several billion a year less (still profitting by billions though).

Also High Street bosses want their 6 or 7 figure bonuses next year, on top of their 6 or 7 figure salaries, so Brown has to keep them sweet.

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please tell, how can they cut rates with the £ collapsing??????????????

Easy, they have defeated inflation with all the DIFFICULT decisions they took last year, like, er, and then theres, er. well, you get the picture.

I am only quoting Brown what he said at the news conference yesterday.

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There's more... 60% chance of a rate cut say the markets... (I'd love to know how they work that out...)

http://uk.reuters.com/article/stocksNews/i...0080109?sp=true

From Betfair (which is a great snapshot of Market option) there is about a 60% chance of a rate cut. Bet fair has been very good at predicting the market

betfair_odds.JPG

post-552-1199895719_thumb.jpg

Edited by moosetea
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If it is an attempt to nobble Merv, it'll only work if he actually wants a second term. If he doesn't, it's a very dangerous strategy, because the moment he's out of the door, he can spill the beans to the whole world as to the extent of Brown's and Darling's culpability and incompetence.

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Now he's trying to destroy the so called independence as well with his partner in crime

Well I'm afraid he's made the very basic error of being less than subtle about it.

it's a good thing in a way,because the more outlandish the stats become,the less believable they are and the angrier joe public will get.

either we get the police state or he,tony and the rest of the cronies are heading for the guillotine.....maybe both.Ceaucescu got dealt with quite harshly when his little stasi empire crumbled.

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  • 439 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% +
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      • up 5%



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