Tuesday, Aug 22, 2006

City Expect another rate rise before year end

TimesOnline: Expectation of rate rise grows in City

More than two thirds of city economists believe the Bank of England (BoE) will raise rates before the end of 2006.

Posted by denzil @ 09:34 AM (516 views)
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6 Comments

1. japanese uncle said...

This simply illustrates those 'City experts' are in reality no better than sheer conformists, with mediocre insight into the what is really going on, yet shamelessly claiming exorbitantly higher salary than ordinary workers. Weren't they predicting no rate increase for the foreseeable future just a few weeks ago. Pathetic!

Tuesday, August 22, 2006 11:37AM Report Comment
 

2. uncle chris said...

I think we should sell all our shares and stick the money in the bank - that would soon get rid of half of the so-called 'city experts'. Right, better get back to work instead of gassing on here half the day - glad my computer screen faces away from the door :-)

Tuesday, August 22, 2006 12:47PM Report Comment
 

3. uncle tom said...

At least I've been consistant, even if I did get this month's call wrong!

I've been saying all year that 5% at year end was the most likely outcome, and I'm not moving from that.

I doubt they'll raise next month - while November is favourite for the next hike, that's not at all certain.

I detect that central bankers around the globe are getting a bit twitchy - we might see more surprise hikes on other parts of the planet before Christmas.

Looking toward 2007, I can't see any credible prospect of money getting easier. I've been predicting for a while now that the value of the developed world's currencies will prove unsustainable against those of the developing world, and next year could see some significant re-balancing that will put immense pressure on inflation.

Too early and too uncertain to predict any hard numbers, but I estimate there's an evens chance that the BOE rate will be at 6% or more by the close of '07

Tuesday, August 22, 2006 01:13PM Report Comment
 

4. Such_short_memories said...

... and still rising.

Tuesday, August 22, 2006 05:20PM Report Comment
 

5. paul said...

UT, I think they will raise next month.

As soon as the spectre of inflation raises its head, they have to do everything they can to stop it while not making the markets panic.

IOW, no rise this time, no point.

Tuesday, August 22, 2006 06:00PM Report Comment
 

6. European-bear said...

The 3 month libor rate is today quoted at 4.94%. Which puts an interest rate rise a near certainty in the next 3 months and could be as early as September

Tuesday, August 22, 2006 08:35PM Report Comment
 

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