Thursday, July 10, 2008

Interest rates: BoE’s next move will be a cut

Drivel from the telegraph's ''Economics Editor''

''...However, the Bank is unlikely to cut rates until the recession really starts to bite - the reason being that until it does there is always a small chance that wage bargainers will demand higher salaries. But as more companies cut jobs, and the chances of wage inflation leaping higher will diminish and the window of opportunity for lower rates may present itself. So expect a rate cut before the end of the year, though sadly it may come too late to prevent much of the pain currently being felt throughout the economy. ...''

Posted by hpwatcher @ 01:10 PM (1268 views)
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11 thoughts on “Interest rates: BoE’s next move will be a cut

  • This is just the same old, dull, rhetoric trying to influnce the BOE. But Merv and the PPC gang aren’t listening chaps. They have only 1 remit, keep inflation under control. That was the only priority they were given. Inlation is going up, up, up and so are interest rates if they stick to their mission statement. More hogwash (sorry hogwash not you) from the boys at the telegraph, always good for a laugh, anymore of this and they’ll be right up their with the espress and mail!

    I know it’s off topic but I just can’t believe the other hogwash that I watched on last nights Location location & Fluff and Krusties property propaeganda (sorry guide) programmes. I know it’s made a few months ago (maybe) but honestly! Channel four have commssioned 2 more series of this drivel. Do you reckon Krustie and Phril took lessons from the Nazi propaganda machine or perhaps stalin’s regime was a better model for the ‘alice in wonderland’ views these two pompous cretins display on a now twice weekly basis. Fantastic. and now we have the meptimic Sophie to deal with.

    Wow, I no longer need to take LSD and magic mushrooms i can watch property fantasy and live in a world of make believe.

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  • sorry spellings just gone haywire, right I’m of to the pub to celebrate the greatest property crash in british history, anyone joining me? Neptimic, good word.

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  • European-bear says:

    its also the same old retoric that wage barginers are the cause of inflation. Its not, its the money supply stupid! And the money supply is controlled by the government and BOE. Without an increase in the money supply you can demand higher wages but you won’t get them (unless someone else takes a cut), and you can try to raise prices, but you won’t be able to (unless something else gets cheaper).

    Always blame the workers for inflation!!!!

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  • Whostolemyendowment says:

    Well said nooneo…by the way can I have your unwanted LSD?

    Interest rates are not there to support the mortgage market, they are there to stem inflation (in the long return) and preserve the national currency…..if this tool is used foolishly like is, and has happened in the USA, you get a weak currency and ultimately rampant inflation.

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  • beartil2010 says:

    Meptimic – I thought that was new word! I now see you meant moronic.

    If any of these property charlatans had any integrity they would stop these shows going on air as it makes them look like idiots even the the layman. And if they were experts they would have ensured they had the ability to enforce that sort of veto as they would know that the market can change in relatively short timeframes.

    But no, they continue to wh*re themselves out.

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  • beartil2010 says:

    Sorry – even TO the layman.

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  • My favourite is “homes under the hammer”. Surely the BBC can see how crass and tastless it is to air this program every single morning of the week! Have they no shame? Right canged my mind not going to the pub, going to set up a repossession company, there’s gonna be a hoooooooooge demand. Reckon i cn employ loads of bouncers and dorrmen from all the houses/flats/pubs/clubs/gated cummunities that are going to need repossessing.

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  • nooneo – it strikes me you have too much time on your hands if you watch all the property porn. Are you testing your resolve not to be indoctrinated?

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  • The Telegraph is taking the right view – raising interest rates would not be the right thing to do economically. Raising rates now would not control inflation but would cause a (greater) recession.

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  • Techieman..
    I’m using it as therapy. After Gordon Broooown’s revelation that we need to eat up all our fud, I’m recycling this sh*te through my feeble brain to obliterate post traumatic stress disorders brought about by living wih the tories for 18 years and now the tories again for the last 10 years, it’s becoming a bit of a blur. I am therefore saving the country a fortune in councilling fees.
    Seriously, I work from home, computer on, telly on, waiting for the HPC…

    I wait no longer, te he.

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  • Ilejustwait says:

    doesn`t really matter about the BOE cutting interest rates, all other lenders are putting there rates up and allso chargeing higher service charges / setup fees etc, the BOE have lost the control of the ball as they say

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