Pound in freefall against dollar

justpurchased

Oil down 7.5% today. If oil keeps going like this it will have a greater bearing on inflation than the £ sliding.

epz_2

StevieJ wrote: »

What are you trying to achieve with this?

thought that would be obvious, house prices are going to fall and the banks are keeping their rates nowhere near interest rates so the BOE isnt really in control of the economy at the moment anyway.

whack up rates to the level the banks want them to be, watch prices drop quickly and stabilise at the lower level sooner than drawing the process out so we can get on with business for a few years till the next bubble.

justpurchased

epz wrote: »

thought that would be obvious, house prices are going to fall and the banks are keeping their rates nowhere near interest rates so the BOE isnt really in control of the economy at the moment anyway.

whack up rates to the level the banks want them to be, watch prices drop quickly and stabilise at the lower level sooner than drawing the process out so we can get on with business for a few years till the next bubble.

?
Thus getting rid of every business also. Has no one ever realised that we are now getting to nearer to more historical exchange rates with the $..
I know you may want to watch house prices drop but it would nice to have a country left at the end!

StevieJ

epz wrote: »

thought that would be obvious, house prices are going to fall and the banks are keeping their rates nowhere near interest rates so the BOE isnt really in control of the economy at the moment anyway.

whack up rates to the level the banks want them to be, watch prices drop quickly and stabilise at the lower level sooner than drawing the process out so we can get on with business for a few years till the next bubble.

Reads like a recipe for deflation to me a very scary option (with recession imminent and commodities tumbling).

alared

Generali wrote: »

Why do you think that interest rates should rise by 0.5% please?

I said by "at least .5%".
I tend to agree with Epz,that they should increase by a lot more but there`s no way the government would allow this,plus the BoE hasn`t the nerve.
Please don`t tell me the BoE is independant and has been for the last 12 years.

Low interest rates and cheap money is the cause of all the problems NOW.
Low interest rates = high house prices and visa versa.

jamescredmond

off to the netherlands in a few weeks.

got the fx euro card and loaded it with E750 back in march at a rate of E1.31.

God, what a clever smartass I am........

lostinrates

chucky wrote: »

am i missing something - how is this related to the House Prices board or even House Buying, Renting & Selling??

Goodness, well, yes, I think you might be missing something. House prices do not stand alone on a financial island. One of the main factors in the fall of house prices is banks lending ability. Banks lending ability is dependant on banking health, which is dependant on the international economy and the Sterling status with in that.

Generali

chucky wrote: »

am i missing something - how is this related to the House Prices board or even House Buying, Renting & Selling??

Quite a few posters seem to revel in the possibility of some sort of economic catastrophe. I have no idea why.

House prices are related to the strength of the general economy so this isn't completely OT. Also, I suspect that MSE sees this as a bit of a nutters board and pretty much leaves it alone as loads of stuff on here is miles OT and would probably be moved on other boards.

mizzbiz

I'd get my dollars now if you're planning on spending a lot. If you're not then remember you'll not earn interest between now and then if you have the $ in your house and it's also a security risk.[/quote]

Potentially the return on your money having it in dollars at the mo could me much better than keeping it in the bank? I've just realised that an account I have in dollars is worth much more now in GBP, I couldn't have made that kind of money having it in an ISA

Summercherry

I am going to Disneyland in October and had to pay for the remainder of it by 6th September. Luckily I decided to pay early and paid for it at the beg of August I owed $1000 and got an exchange rate of 1.90! - glad I didn't hang around - how lucky is that!! Phew :T