Wednesday, Oct 04, 2006

Will the Bank of England raise interest rates?

MoneyWeek: Will the Bank of England raise interest rates?

Read the first part of the article. Then ask yourself what is stopping the BoE from raising interest rates tomorrow. Do you like the answer?

Posted by talking rot @ 02:55 PM (450 views)
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3 Comments

1. autopilotengage said...

I totally agree with the point that shop price deflation has been offsetting inflation elsewhere. No longer will the falling price of DVD players be any excuse, the CPI basket can contain nothing but products for which the prices are rising. Damn, just the 5 DVD players for me next week then instead of the usual 10......

Wednesday, October 4, 2006 06:49PM Report Comment
 

2. sirgoogle said...

Why wait ??

If the ECB raises IR then I believe that the MPC will also recommend that the BoE does the same. The EUR and GBP are pegged (same external pressures). I also firmly believe that the IR rise will have very little effect on House prices. We will need several more IR rises (one every other month for the next 6 months) before BTL and other speculators feel compelled to leave the market and sell up (it is only when there is a glut of houses that a HPC can occur - the conditions are just not there yet).

Sorry to pop anyones hopes for an immediate HPC - society obviously has not got enough debt racked up yet. Com'on Britian you need to borrow some more to prop up Crash Gordon before he becomes PM - and then can blame someone else for the HPC. We will not get a HPC until the 100 year mortgage appears with deposits required from Parents and Grandparents combined. Where is that GBP 500K poky 1 bedroom flat overlooking a Gas works in Port Talbot? Where is that FTB with his Parents and Grandparents proudly being interviewed outside the flat by the BBC as an example property investor?

No we have a long way to go before the above scenario .... no HPC. Britain never has these. Property prices only ever go up. The market is in a new paradigm. This Bear is now a property market Bull..... I'm off to the estate Agent .... I believe the VI spin... they were right all along...

Wednesday, October 4, 2006 07:12PM Report Comment
 

3. Dude said...

Now come on sirgoogle, time to take your medicine.

Sirgoogle, sirgoo... c'mon... Sirgoogle! That's it. Sit down there.

Good, now drink this...

(oh my God, he's right!!)

Wednesday, October 4, 2006 11:53PM Report Comment
 

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