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interestrateripoff

Mpc Braced For 'most Difficult' Interest Rates Meeting

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http://www.telegraph.co.uk/money/main.jhtm...03/cnmpc103.xml

The Monetary Policy Committee could blindside the markets with an increase in interest rates this week as it convenes for a meeting economists describe as "the most difficult" it has faced.

Although most observers still believe the MPC will keep rates on hold, markets are bracing themselves for what they think is the increasingly likely chance the committee may push through a quarter-point increase as hikes in electricity and gas prices threaten to push up inflation to more than double the Government's 2 per cent inflation target.

The market is pricing in only a 20 per cent chance of an interest rate hike, but Michael Saunders, economist at Citigroup said he believed the chances of a rise from 5 to 5.25 per cent were far higher.

"The upcoming MPC meeting is likely to be the most difficult the committee has ever had," he said. "Can they afford to hike rates when the economy is almost certainly going into recession? Can they afford not to hike rates when they are going to publish a forecast that CPI inflation will rise to about 5 per cent in the coming months?"

Most analysts now see virtually no chance of a rate cut this week, particularly after a recent wave of increases in gas and electricity prices that could push up some household bills by up to 40 per cent.

"The question is whether shock therapy is needed," Saunders said. "On balance we go for unchanged rates, but it is a close call."

It would tip the economy into a severe recession and not please his political masters.

However what appears lacking in the article is that this would drastically shift monetary policy back to the 80's. Current interest rates are set with the view they take 18-24 months to feed into the system, if Mystic Merv increases rates now we'll be going back to the 80's where the view was rate rises have immediate effects.

O to be a guessonomist!!!!!

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That's some posting rate you've got there! - 'how to become a HPC Veteran in 31 days' ;)

Just think how many posts I'd have if I actually had an opinion :P

Edited by interestrateripoff

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Hmm, not getting any replies to some of the new topics. Bloody hell, he's just added another 5 posts since I last looked - I think he's going to overtake RB by Christmas at this rate ;)

I doubt it I'm hols for 2 weeks in Sept, that should prevent around 2000 posts :P

Can you have post inflation? Perhaps Mystic Merv should increase interest rates to prevent post inflation?

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Most analysts now see virtually no chance of a rate cut this week, particularly after a recent wave of increases in gas and electricity prices that could push up some household bills by up to 40 per cent.

I think it is ironic that the reason the BoE can't raise rates is because inflation is too high :lol:

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as it convenes for a meeting economists describe as "the most difficult" it has faced.

Indeed. I hear that the cucumber sandwiches will have to be on white, not wholemeal bread this time, and the coffee will be instant, not ground.

Their normal supplier has gone bust you see.

As for the actual decision, that's easy. They just allow their consciences (and their wallets) to dicate their actions.

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Indeed. I hear that the cucumber sandwiches will have to be on white, not wholemeal bread this time, and the coffee will be instant, not ground.

Their normal supplier has gone bust you see.

As for the actual decision, that's easy. They just allow their consciences (and their wallets) to dicate their actions.

:lol::lol::lol:

Harrods is not bust as far as I know!

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It's a difficult and important meeting because if the MPC doesn't raise rates after 35% energy increases and predictions of 5% plus cpi then all the extra damage to the UK from inflation will be well and truly hung on them and the governor.

Likely they will be pressured not to raise because of this.

The MPC should remember that they were given responsibilty to control inflation and not to steer the UK veering erratically from boom to bust to boom to bust and back again all at the whim of a government.

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It's a difficult and important meeting because if the MPC doesn't raise rates after 35% energy increases and predictions of 5% plus cpi then all the extra damage to the UK from inflation will be well and truly hung on them and the governor.

Likely they will be pressured not to raise because of this.

The MPC should remember that they were given responsibilty to control inflation and not to steer the UK veering erratically from boom to bust to boom to bust and back again all at the whim of a government.

Can you imagine the carnage a .25% rise would do this week.

It would be awesome and it is the right thing to do.

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Can you imagine the carnage a .25% rise would do this week.

It would be awesome and it is the right thing to do.

Some tough love needed indeed.

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Can you imagine the carnage a .25% rise would do this week.

It would be awesome and it is the right thing to do.

Maybe it would have been the right thing to do 6 months ago.

Now it should be 0.75 to get things moving.

Inlfation is getting way out of control and if they don't do something now, the less well off in the UK population will struggle to buy basics foodstuffs with all the implications that follow.

When the banks posts their further huge losses this month, and the business community/corporate giants begin to default in their payments in a big way, what then?

Will they then increase prices in a more ruthless, coordinated manner?

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Can you imagine the carnage a .25% rise would do this week.

It would be awesome and it is the right thing to do.

My expectation is for a mixed vote and hold. I think Danny B won't vote for a cut, but for a hold - and a result of 5:4 in favour of a hold. I think this would pave the way to rising next month - having given everyone a month to get used to the idea that the direction is up.

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To UK banks.

------------

Resume your lending to x3.5

Then we may just survive

If you fail to implement this

You are just taking the p1ss.

Sorry, I think I'm done now- just had to get it out of my system.Thanks.

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Mpc braced for 'most difficult' meeting

Because our banks have took a beating

They should not have lent so bloody lightly

Look what they've done, to dear old Blighty.

Why should it be a difficult meeting?

Inflation is above target.....and they are measured on hitting their target = i/r's increase.

Simple as that..

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http://www.youtube.com/watch?v=v9yIT0k3T_g

crank up your feeble acer laptop speakers and rock.....

You need coolin', economy, I'm not foolin',

I'm gonna send you back to schoolin',

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You've been coolin', economy, I've been droolin',

All the good times I've been consuming',

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Wanna Whole Lotta Loan...

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Way down inside... gordon... You need... loans.

Keep it coolin', baby.

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http://www.youtube.com/watch?v=v9yIT0k3T_g

crank up your feeble acer laptop speakers and rock.....

You need coolin', economy, I'm not foolin',

I'm gonna send you back to schoolin',

Way down inside economy, you need it,

I'm gonna give you my loan,

I'm gonna give you my loan.

Wanna Whole Lotta Loan...

Wanna Whole Lotta Loan...

Wanna Whole Lotta Loan...

Wanna Whole Lotta Loan...

You've been learnin', economy, I been learnin',

All them good times, economy, I've been yearnin',

Way, way down inside economy, you need it,

I'm gonna give you my loan... I'm gonna give you my loan.

Wanna Whole Lotta Loan...

Wanna Whole Lotta Loan...

Wanna Whole Lotta Loan...

Wanna Whole Lotta Loan...

You've been coolin', economy, I've been droolin',

All the good times I've been consuming',

Way, way down inside, I'm gonna give you my loan,

I'm gonna give you every inch of my loan,

Gonna give you my loan

Wanna Whole Lotta Loan...

Wanna Whole Lotta Loan...

Wanna Whole Lotta Loan...

Wanna Whole Lotta Loan...

Way down inside... gordon... You need... loans.

Keep it coolin', baby.

Top notch stuff as ever young man!

My sec' even commented on my air guitar this time.

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  • 399 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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