Bank of England expected to hold interest rates

Heyman_2

Harry_Powell wrote: »

Do you think the 0.5% rate is motivated by politics or by a solid fiscal decision made by a truly independent central bank? I think it's the former and so when the political masters change, so will the rates.

Why are you convinced of this when the US has dropped rates lower than us and the EU has rates at 1%? In fact, most other countries IRs have been reduced greatly as well so I don't understand this assertion that Gordon Brown, as much as I dislike him, is somehow doing this exclusively to save his own neck??

inspector_monkfish

Harry_Powell wrote: »

Do you think the 0.5% rate is motivated by politics or by a solid fiscal decision made by a truly independent central bank? I think it's the former and so when the political masters change, so will the rates.

A year ago would you ever have believed that we would see rates drop so fast, so far? Why do you not believe that they could also go up so fast and so far?

Have you gotten so used to 0.5% that you think that 2% is a high rate?

i think its a bit of both, but more towards the latter.


the reason i don't see chunky hikes happening, is purely the 'panic' factor.
If and when they decide to hike, BoE will want to have a more gradual incline in rates, to avoid giving the impression of panic.


However, what will decide things, is what the Fed do in the US.
'Cos you can pretty much guarantee, whatever they do we will not be far behind them....

purch

Do you think the 0.5% rate is motivated by politics or by a solid fiscal decision made by a truly independent central bank?

Well it certainly isn't a FISCAL decision of any kind !!!!