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Senior Citzen Pundit On Bbc News 24 Says I Rs Going Down To 3 1/2 %

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In about a year's time - that's what he reckons.

Is he a spinmaster or just a little simple?

Edited by The Last Bear

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In about a year's time - that's what he reckons.

Is he a spinmaster or just a little simple?

He is an idiot. Inflation will be 4%-5% by then, so I doubt Merv will be thinking of cutting. We might even have 5.5% rates by then.

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He is an idiot. Inflation will be 24%-35% by then, so I doubt Merv will be thinking of cutting. We might even have 5.5% rates by then.

Fixed.

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In about a year's time - that's what he reckons.

Is he a spinmaster or just a little simple?

He is simply a pessimist. I too am a pessimist.

I think that his time-scales are wrong... but I expect interest rates to go down to 3.5% - though, I think, 2-5 years, not within one.

The reason, of course, will not be to bring down mortgage rates - but a two-fold strategy to allow banks to re-capitalise (or dramatically lower loan principles) while encouraging those with substantial cash savings to engage in direct investment.

When the economy crashes, after a lag, interest rates will follow the economy down.

Before we get there, of course, we are going to see significant inflation in the price of raw materials and imported goods; unless, of course, wage inflation kicks off, however, the effect will be a significant and protracted recession... thereafter central bank interest rates can come down... this will devalue the currency further - but will hopefully make British endeavours cost-competitive in the context of exports. This will, of course, be accompanied with a significant drop in the mean quality of life for British people.

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  • 396 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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