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Realistbear

" Rate Cut Hopes Fade Further"

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http://uk.biz.yahoo.com/10032008/35/rate-c...de-further.html

Monday March 10, 04:10 PM
Rate Cut Hopes Fade Further
By David Stevenson
If you think that prices are already rising too fast for comfort, I'm afraid there's
more bad news in the pipeline
.
Cost pressures faced by British industry are now rocketing upwards at their
fastest annual pace since comparable records began in 1986
. And February's so-called 'factory gate' prices, which UK manufacturers charge their customers for finished goods, remained at their highest since July 1991.
So the near-term prospect of more base rate cuts is fading fast. Despite the slowing economy and sliding housing market, the Bank of England now has even less room to manoeuvre.

As Gordon rises to his feet this week duing PM's QT he will tell Da'ed Cameroon that the UK has among the lowest rates of inflation in the industrial world and that we have had 10 years of uninterrupted growth.......

The "official" rate of inflation is still 2.1% of course.

IN the meantime IR should begin rising rapidly very soon. Mortgage rates first, then the rest to follow.

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RB, don't bet on it. I think they are simply ignoring inflation for now and the aim is to cut cut cut when it comes to IRs.

I notice the FTSE is tanking again this afternoon so that, fears of a housing and banking crash will just lead to increasing calls for the Fed, BOE and ECB to cut. Even on Working Lunch today they mentioned rumours of another sudden Fed IR cut.

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Inflation is turning negative YOY as house prices are predicted to be included in the chancellors basket.

Northern Rock's 100Bn is rumoured to become a PFI project, anyone heard anything about this ?

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Inflation is turning negative YOY as house prices are predicted to be included in the chancellors basket.

Northern Rock's 100Bn is rumoured to become a PFI project, anyone heard anything about this ?

Who has more luck - Darling saving Northern Crock or Keegan saving Newcastle footie team? Both appear to be going down - along with interest rates.

RB seems convinced that IRs are about to go up. Maybe at the end of the year and into 2009 but I can't see it happening before next Winter at the earliest.

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Who has more luck - Darling saving Northern Crock or Keegan saving Newcastle footie team? Both appear to be going down - along with interest rates.

RB seems convinced that IRs are about to go up. Maybe at the end of the year and into 2009 but I can't see it happening before next Winter at the earliest.

Exactly. Its much more likely that we will follow the US. Rates going down fast whilst inflation rampages upwards.

I do worry that we are not as strong as the US though. Hold on to your foil hats, this sh*t is going to get scary. Be vigilant

Edited by DoctorJ

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Falling IRs usually result in the stockmarkets climbing as people abandon cash and opt for shares. However, this liquidity crisis is seeing all sorts of financials selling off shares to remain solvent/liquid or doing so out of fear... the result being that the small investors are being screwed both on ISAs/Peps and also on any savings they have.

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  • 294 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% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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