Thursday, January 7, 2010

Conway starts to get it

Bank of England: the calm before the storm

Roger Bootle, says the following: “Not only should the Committee extend QE further, but I think that it should consider going the whole hog and cutting interest rates all the way to zero. In the end, the Bank’s decision might be less about the wider economy than about the financial system. Looked at through one prism, the problem at the moment is that banks are still not lending as much as they could and should.

Posted by devo @ 03:14 PM (1140 views)
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2 thoughts on “Conway starts to get it

  • Has Roger got a big portfolio of BtLs? Maybe his mates speculated heavily on property. Make no mistake, the reason for keeping rates low is to prop up house prices. Next month’s CPI/RPI figures will show the index rising – but still the rates (in Feb) will stay low. Yup, no change forecast next month either.

    VIs really sweating now – keep the rates down at any cost!!!

    Makes you wonder what the BoE will do when the ECB puts up rates….

    Nevertheless, mortgage rates are slowly drifting up….look at the Nationwide’s SVR…….

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  • Thatcherschild says:

    On the basis that he predicted a HPC of 30% I seriously doubt he has a big portfolio of BTLs. He’s an economist, looking at wider issues than house prices. Doesn’t make him a VI

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