Thursday, November 6, 2014
Nobody wants to post BoE decisions on this site anymore. Why?
UK interest rates remain at record low of 0.5%
We can't change the rates even if we wanted to. Today's other story is about how the ECB's former President Jean-Claude Trichet wrote to the Irish Finance Minister in November 2010. Lenihan had strict instructions on how to behave. Q. Does anyone believe a similar game is currently being played out between the Fed and the UK? A. Of course it is.
Posted by alan @ 07:42 PM (5405 views)
8 thoughts on “Nobody wants to post BoE decisions on this site anymore. Why?”
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Maske2g says:
“Nobody wants to post BoE decisions on this site anymore. Why?”
Perhaps its because they aren’t making any…
stillthinking says:
Because nobody thinks they will rise.
In fact I have another reason why not, if it were needed. When Merv crashed the currency and did a fire sale overseas at our expense, he put a lot of earning power overseas i.e. part of our (worsening) trade deficit is due to profits/rent being repatriated.
As we merrily run a deficit each year, -if- the currency was strengthened through an interest rate rise, foreign goods would be cheaper and more would be bought and our deficit would be worse. What actually needs to happen is for foreign goods to become expensive enough that we stop buying them. So as ever, the choice is raise interest rates, or let the currency devalue.
khards says:
> Nobody wants to post BoE decisions on this site anymore. Why?
It’s not a decision is it? they have no choice.
libertas says:
They will when rates are cut to 0.25% in response to the deflation we will get after Christmas if oil continues to remain low or even drop further. Given that the oil price fall was a structural response to increased US production along with Chinese and European weakness, we could see oil settling nearer $60 a barrel.
Of course, this deflation IS the solution for the real economy, but banksters like Carney will try to reflate things to keep their buddies on life support.
taffee says:
Thing is though people or banks in trouble have had 6 years to offload their toxic debts
However I feel they have used these emergency rates and props to stock up on more potentially toxic debt
Otherwise rates would have increased
I cannot see how this can end any other way but badly….very badly
khards says:
@libby – Central banks only respond to asset deflation, not goods deflation. If property prices hold up there will be no rate cuts, if they fall then there may be.
Doesn’t really matter does it? Even dropping the rate to 0.5% is going to have bugger all effect, it’s not like dropping from 5% to 0.5% in the space of 12 months.
I fully expect to be here still commenting on the 0.5% base rate in 10 years time.
alan says:
Cutting the rates now is not going to affect a pimple on a pig’s bottom. There is simply no room to manoeuvre. Rates will move when the Fed says. Right now the Fed (+Goldman) are running the world through their reserve currency ($).
jack c says:
@ Alan, Interesting times ahead (if that’s the correct expression)
http://money.cnn.com/2014/11/07/investing/russia-currency-ruble-putin/index.html?iid=Lead