oh dear oh dear. No end in sight. 0% here we come

[Deleted User]

http://www.citywire.co.uk/personal/-/news/markets-companies-and-funds/content.aspx?ID=329174&re=4723&ea=3040

Kev09

There so much contradictory data flying about at the minute.

There is big Merv quoted in this article saying:

'Further easing in monetary policy may well be required. That is likely to include actions aimed at increasing the supply of money in order to stimulate spending,' he said.

I was under the impression that it was demand for money that increases inflation and simply increasing supply makes matters worse, once interest rates go to zero, printing more money ain't gonna help Merv!!!!!!!!!!!!

purch

Mervyn King, the governor of the Bank of England, said the prospects for the UK economy remain weak and the BoE will have to take more measures to tackle the downturn.
'Further easing in monetary policy may well be required. That is likely to include actions aimed at increasing the supply of money in order to stimulate spending,' he said.

Oh my Gawd !!!!

Cue the Zimbabwe,Argentina,Weimar Republic, Wheelbarrow nonsense !!! :eek:

Kev09

maybe I will be a millionaire before I know it!!!!!!!!!

Dithering_Dad

purch wrote: »

Mervyn King, the governor of the Bank of England, said the prospects for the UK economy remain weak and the BoE will have to take more measures to tackle the downturn.
'Further easing in monetary policy may well be required. That is likely to include actions aimed at increasing the supply of money in order to stimulate spending,' he said.

Oh my Gawd !!!!

Cue the Zimbabwe,Argentina,Weimar Republic, Wheelbarrow nonsense !!! :eek:

Oh Lord, they'll all be climbing out of their cellars (or Command Bunkers, as they like to call them) and logging on to tell us the usual "I saw it coming and told ya".

Tin hat on standby...

Old_Slaphead

Mr Thickie here.


Exactly how does this

"Increasing the supply of money in order to stimulate spending"

work then? (Maga tax refunds?????)

Kev09

Handing out free money and telling people go spend!!!!!!!!!!!!!!!!!!!!!!!!

socrates

BTL Mortgages that were £1100 per month are now £300 yet the rent is still £1250 - how long do you think 'they' will allow this to go on for.

They are waiting for enough savers to jump on the 'gold' bandwagon and a few ftb's with deposits to jump in and rates will shoot up again.

Conrad

We need zero rate now.

Of my last 20 enquiries, only about 5 can get a mortgage! Many of those declined have above 25% deposits.
Not that zero rate will encourage lenders to lend, but we need every stop pulling out now.

maninthestreet

Kev09 wrote: »

There so much contradictory data flying about at the minute.

There is big Merv quoted in this article saying:

'Further easing in monetary policy may well be required. That is likely to include actions aimed at increasing the supply of money in order to stimulate spending,' he said.

I was under the impression that it was demand for money that increases inflation and simply increasing supply makes matters worse, once interest rates go to zero, printing more money ain't gonna help Merv!!!!!!!!!!!!

The problem is deflation, not inflation. Inflation is expected to be as low as 0.5% by mid-2009 if interest rates stay at 1%, well below the government target of 2%.

socrates

Conrad wrote: »

We need zero rate now.

Of my last 20 enquiries, only about 5 can get a mortgage! Many of those declined have above 25% deposits.
Not that zero rate will encourage lenders to lend, but we need every stop pulling out now.

Interesting statistics - I wish you would share that with a few of the know it alls on House Buying Selling Renting board - their theories are there is a scramble for properties by ftb's and more deals are being done.

My theory was that there is a lack of deposits not a lack of mortgages - but obviously I am wrong. Perhaps they have deposits but the other factors do not stack up