Wednesday, March 26, 2008

Shop Till You Drop – More Cuts Under Way

King hints at April cut

Economists said King's dovish comments suggest he could vote for a rate cut as early as April after resisting such calls this month. The Bank has already reduced rates from 5.75% to 5.25% since December.

Posted by yoyo1 @ 07:41 PM (836 views)
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4 thoughts on “Shop Till You Drop – More Cuts Under Way

  • Cheekie Charlie says:

    Is it just me or did Mervin Kings statement on house prices make no sense? The BBC cheerleaders jumped on the “stable over the next few years” but the full sentence stated that “if that was to happen the ratio to earnings would return to normal”.

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  • I think this is a tad speculative by the Evening Standard. The single economist quoted is known being dovish as he his known for being consistently wrong about decisions from the MPC. Unless the economy is really starting to tank then I really would not expect an early cut.

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  • GBP back to almost 1.26 euro to the pound – amazing six months ago GBP would have bought you 1.40 euros. More dovish talk like this Merv and the UK will not have a currency left……he was right that this year would be tough, because the BoE and the government (who through idiotic public spending and inadequate/ criminally negligent financial regulation have brought this country to its knees) have decided to ignore first round inflation, which will lead into second round inflation (maybe not in the public sector, as Crash has already tied many into three year pay deals, below the ficticious CPI figures – wage and debt slaves – the free world) in the private sector – further curtailing expansion and encouraging more employers to shed staff – rising unemployment (not to mention the millions on benefits, which will have to be cut due to bankruptcy of the country, so these figures will appear on the unemployment figures). Cutting rates will do absolutely sod all except exacerbate an already dire situation, and allow a few rich city boys/girls to get richer and then ship their wealth out. I am sure in ten maybe twenty years when the weak sterling has enabled Crash to reduce the national debt to nothing (I mean worth nothing, as sterling will be worth nothing) , the country will again show signs of strength, but by then oil will be $3000 a barrel and the horse and cart will be the new “black”. Oh, one more thing, when Crash has completely destroyed the UK, some other poor sap will have to come in and make amends (hopefully this person wil have more backbone than either Blair or Brown).

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  • Rate cuts? That’s not what Mervyn King said at all.

    He actually said that he would no longer bow to pressure for cuts from the lenders and would instead provide liquidity as required. Nothing about rate cuts at all!

    Good old wishful thinking. Evening Standards are slipping again.

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