The B.O.E decision Tommorow ..

fatpig_2

justpurchased wrote: »

Forget it I wont even bother as it is only Silly people who have debt! not business at all!
As anyone here heared of the 30 Day invoice!

You'll deny it of course but you were probably saying the same thing 2, 3 , 5 years ago. So it's you and other numpties that helped cause the ill-fated boom and that got us in this mess in the first place.

Dan:_4

fatpig wrote: »

I'd put them up at least 0.5%. .

Im sure you would, as you can't afford to buy a house.

Luckly, it ain't gonna happen.

justpurchased

fatpig wrote: »

You'll deny it of course but you were probably saying the same thing 2, 3 , 5 years ago. So it's you and other numpties that helped cause the ill-fated boom and that got us in this mess in the first place.

Saying what that we are going straight in to recession. No we wern't then but houses were overpriced. Sorry mate if i thought putting intrest rates up would help UK business I would says but it won't. It is a shame you can see nothing but houses in your decision process.
Thanks for the complement, I must remember that it is lower house prices at all costs and not just stabillity.:rolleyes:

ad9898_3

Dan: wrote: »

Im sure you would, as you can't afford to buy a house.

Luckly, it ain't gonna happen.

Do you know him, how do you know he cant afford ?

ultra10

My thinking behind there being a reduction is that oil has tanked in the last 6 or so weeks from over $140 a barrel to $106, the £ has weakened a lot so imports are cheaper also !!... The BOE know quite how bad the Economy is but are reluctant naturally to tell the rest of us .. Although I think it will & probably should be a "Hold", I can see more than just the Maverick Blanchflower voting for a cut ..

fatpig_2

Dan: wrote: »

Im sure you would, as you can't afford to buy a house.

Luckly, it ain't gonna happen.

Already got one buddy. This country has had enough of the muppets calling for lower interest rates, they're to blame for this entire crisis

lrr_2

Dont matter what happens tommorrow although I live in hope. Last time we got a rate cute my mortgage provider never passed it on! Hopefully the next cut they will pass it on. After all its meant to be in line with interest rates. Seems to count for nothing nowadays!

stevie_wonder

They need to cut if they want to wake the economy and consumer confidence to stop the spiral and downward trend as a whole

Generali

ultra10 wrote: »

My thinking behind there being a reduction is that oil has tanked in the last 6 or so weeks from over $140 a barrel to $106, the £ has weakened a lot so imports are cheaper also !!... The BOE know quite how bad the Economy is but are reluctant naturally to tell the rest of us .. Although I think it will & probably should be a "Hold", I can see more than just the Maverick Blanchflower voting for a cut ..

If the £ weakens then imports cost more not less.

Imagine you want to buy something that costs $300 in £s.

If £1=$2.00 it costs you 300/2.00 = £150
If £1=$1.50 it costs you 300/1.50 = £200

The thing that a lot of people miss (including many economists) is that nothing in economics happens in isolation.

Ok the £ is going down => more expensive imported goods but why is the £ going down? The main reason at the moment is, foreign investors think that the UK economy is going down the tubes. So 2 things could happen:

1. Forgeign investors are right. The economy goes down. What happens when economic activity reduces? Prices fall = lower inflation. So inflation is higher due to the lower £ but lower due to the impact of recession.

2. Foreign investors are wrong. The economy is strong. Investors bring their money back. The pound goes up and that reduces inflation but the deflationary effect of recession isn't there.

The MPC isn't just going to look at the £ and say to themselves, "Hmm. £ down 12% => inflation. Must be seen to act. Let's raise interest rates." They look at the bigger picture.

napoleon

Estate Agents, Surveyors, etc. are always moaning about interest rates being too high even when we were in boom times. Those sods only care about themselves. Therefore instinctively I think they should go up.