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November Base Rate Predictions
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monkeymaster wrote: »Because the oil price has halved which they think will start eating into the inflation figures and we've had our first contraction in GDP in a long time which was worse than expected they now believe that rates need to be brought down fast to avoid a very bad recession/depression. So the game has changed basically. Until recently it was radical for the BoE to cut rates two months in a row or by more than .25% but now they're doing both. Expect things to be more volatile now.
Yup, and the fiscal policy guys are afraid of doing what Japan did which was to cut rates too slowly... businesses died while "zombie banks" which were insolvent in all but name were propped up by the state. There was close to ZERO growth in the 90s (the "Lost Decade" for Japan) and real incomes fell.0 -
OUTCOME:
MPC CUTS RATES BY 1.5% TO 3.00%
Christ - Did not see THAT coming.
Very interesting to see now what Halifax do with thier trackers.......Im on Base - 0.31%, so I myself am very interested to see what they do to impose thier 3% discertionary lower limit.0 -
Neither did I thought it would be 1%
Its on BBC web site now
http://news.bbc.co.uk/1/hi/business/7713006.stm0
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