Inflation Rises to 4.7%

Dan:_4

For those of you that are interested, Inflation now up to 4.7%. No chance of an interest rate cut for a few months now.

On a positive note, the BoE has just injected a further 20 Bil into the money markets.

http://news.bbc.co.uk/1/hi/business/7618286.stm

ad9898_3

Dan: wrote: »

For those of you that are interested, Inflation now up to 4.7%. No chance of an interest rate cut for a few months now.

On a positive note, the BoE has just injected a further 20 Bil into the money markets.

http://news.bbc.co.uk/1/hi/business/7618286.stm

That BoE money will almost certainly have to be paid back within the next couple of days.
As far as interest rates go, Brown will want them to be cut to save his skin, he is deluded of course because he's finished without a doubt. I just hope Merv and the others stand firm and don't cut rates.

Its no use your mortgage payments going down (they wont anyway), when the money you have saved you have to spend on your £3 loaf of bread,

HammersFan

ad9898 wrote: »

Its no use your mortgage payments going down (they wont anyway), when the money you have saved you have to spend on your £3 loaf of bread,

They have been going down anyway without a cut in BoE rates.

Dan:_4

ad9898 wrote: »

That BoE money will almost certainly have to be paid back within the next couple of days.

No, it dosen't work like that. Banks can't borrow from the money markets so the BoE are lending to the banks instead, and charging interest of course.

ad9898 wrote: »

As far as interest rates go, Brown will want them to be cut to save his skin, he is deluded of course because he's finished without a doubt. I just hope Merv and the others stand firm and don't cut rates.

Interest rates WILL be cut whether you like it or not, but the BoE will hold it off for as long as possible.

ad9898 wrote: »

Its no use your mortgage payments going down (they wont anyway), when the money you have saved you have to spend on your £3 loaf of bread,

They will go down for those on a tracker or the SVR. The difference will be a lot more then spending £3 on a loaf of bread.

P.S Your being tucked up if your spending 3 quid on bread.

WTF?_2

Dan: wrote: »

For those of you that are interested, Inflation now up to 4.7%. No chance of an interest rate cut for a few months now.

They may well be forced into a rate cut anyway.


As for inflation - I'd reckon that I've been seeing an average 10% or more price increases over last year in the day to day stuff that I buy. A lot more for the oil for my central heating, though that is a twice a year thing. And I haven't seen the effects of the electricity prices rises yet.

The HPI landslide of debt and malinvestment that has built up ever more momentum over the last decade has caused enormous devastation now that it has reached the economy at the bottom of the hillside.

Sir_Humphrey

The BoE are probably going to have to cut in the not too distant future. With oil and commodities falling, and producer prices starting to fall, inflation may well be going down in six months time, when the cut would start to "kick in". I doubt it will make much difference though.

It would not rescue the housing market. Lehman Brothers is mentioned in the novel American Psycho, and the housing market after the Lehman's collapse is deader than Patrick Bateman's most gruesomely dispatched (imaginary?) victim.

Chris2685

The more the buffers are put up, the larger the eventual flood will be when the dam breaks...

ad44downey

Dan: wrote: »

For those of you that are interested, Inflation now up to 4.7%. No chance of an interest rate cut for a few months now.

On a positive note, the BoE has just injected a further 20 Bil into the money markets.

http://news.bbc.co.uk/1/hi/business/7618286.stm

How's that positive? They're gambling with our money yet again.

brightonman123

where does the BoE, or European Bank get these funds?

SOMEONE has ££ to spare...

Dan:_4

ad44downey wrote: »

How's that positive?

because commercial banks are holding back from lending to each other right now, so unless you want the entire banking system to seize up, this is positive action from the BoE - the money has been made available at its base rate and is only short term to keep things ticking over for the next few days following the turmoil over the last 48 hours.

The European Central bank has made 70 billion euros available. And the US and Japan have injected billions too.

ad44downey wrote: »

They're gambling with our money yet again.

It's not your money anymore, is it.

ad44downey

It is still my money. They are mere custodians of it. And I don't appreciate them wasting it one minute and gambling with it the next.