Thursday, May 15, 2014

Ho ho ho

Bank of England doesn’t know how to raise interest rates

THE governor of the Bank of England has admitted they could not raise interest rates even if they wanted to.

Posted by tick tock @ 07:00 PM (2343 views)
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3 thoughts on “Ho ho ho

  • Very amusing.

    On the serious side does anyone want to predict when IRs will rise?

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  • UK government is not going to want to increase the interest on their own debt, so it won’t come from them.

    The thing is that the whole financial system is now so vulnerable i.e. stocks, bonds, you care to name it, so any slight shock………

    Eventually something nasty will happen.

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  • Latterdaysinner says:

    I think the government’s exposure to rising rates would be very limited. They only issue fixed rate bonds, hence interest rates would only rise on new borrowing. It’s true that they are borrowing a lot at the moment, but the vast mountain of debt that they have already accumulated would not be affected from their perspective. It’s the bond holders who would be affected.

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