BoE MPC voted 9-0 for status quo on QE, rates in July

inspector_monkfish

09:30 22Jul09 BOE MINUTES-MPC VOTED 9-0 FOR STEADY RATES AND KEEPING 125 BLN STG ASSET-BUYING PROGRAMME IN JULY
09:30 22Jul09 BOE-KEY QUESTION WAS WHETHER IMMEDIATE CHANGE IN QE TOTAL NEEDED, AUGUST BETTER TIME TO REASSESS
09:30 22Jul09 BOE-LITTLE CHANGE TO MEDIUM-TERM ECONOMIC OUTLOOK SINCE MAY, BUT NEAR-TERM DOWNSIDE GDP RISKS LOWER
09:30 22Jul09 BOE-Q2 GDP FALL LIKELY TO BE SMALLER THAN MPC HAD THOUGHT 2 MONTHS AGO
09:30 22Jul09 RTRS-BOE-SURVEYS SUGGESTED THAT MOMENTUM IN H2 GREATER THAN EXPECTED IN MAY, NEAR-TERM CPI OUTLOOK HIGHER
09:30 22Jul09 BOE-IMPORTANT TO RECOGNISE STOCK OF QE PURCHASES DETERMINES STIMULUS RATHER THAN FLOW
09:30 22Jul09 BOE-LITTLE FIRM EVIDENCE OF WHAT IMPACT QE HAVING ON BROADER RANGE OF ASSET PRICES
09:30 22Jul09 BOE-WEAKNESS OF BANK LENDING STILL WEIGHING ON RECOVERY PROSPECTS
09:30 22Jul09 BoE MPC voted 9-0 for status quo on QE, rates in July

LONDON, July 22 - All nine Bank of England policymakers voted this month to maintain the 125 billion pound asset-buying total and keep interest rates at 0.5 percent, and said August would be a better time to see if policy needed to change.
Minutes of their July 8-9 meeting showed the key question for policymakers this month was whether an "immediate" change in the quantitative easing total was required.
But they judged there had not been enough evidence to justify this and the forecasts prepared for the August Inflation Report would "provide an opportuntity to reassess the stock of asset purchases."
The Monetary Policy Committee noted that it was the stock of QE purchases that was important for determining the degree of stimulus rather than the flow.
It judged that the medium-term outlook for the economy had not changed very much since May, though the near-term downside risks to GDP had probably diminished and the immediate inflation outlook may be a little higher.
The MPC said that the fall in GDP in Q2, data are due on Friday, would probably be smaller than it had thought two months ago and surveys also suggested that there was more momentum going into the second half of the year.
But a lack of bank lending was still weighing on the economy.

lemonjelly

So, things are better than they seem, & getting better. Despite this, no-one is lending to each other STILL!

Begs the question WHY?

inspector_monkfish

lemonjelly wrote: »

So, things are better than they seem, & getting better. Despite this, no-one is lending to each other STILL!

Begs the question WHY?

begs the question "Who is telling the truth?"

my guess is no-one

lemonjelly

inspector_monkfish wrote: »

begs the question "Who is telling the truth?"

my guess is no-one

Interesting...

kind of calls into question Beans quote on your other thread. If there was an intention to keep rates low for as short a time as possible, perhaps there would be at least one dissenter? Reading this, was his quote aimed to make savers feel better?

Perhaps the minutes will disclose more when published? Or perhaps none of them want to be made to feel stoopid cos they don't agree with each other?

inspector_monkfish

lemonjelly wrote: »

Interesting...

kind of calls into question Beans quote on your other thread. If there was an intention to keep rates low for as short a time as possible, perhaps there would be at least one dissenter? Reading this, was his quote aimed to make savers feel better?

Perhaps the minutes will disclose more when published? Or perhaps none of them want to be made to feel stoopid cos they don't agree with each other?

i think alot of people have misinterpreted what he said yesterday.

'as short as possible' could still mean 18mths, instead of 3years
some have read it as 3mths instead of 12mths....

Generali

inspector_monkfish wrote: »

i think alot of people have misinterpreted what he said yesterday.

'as short as possible' could still mean 18mths, instead of 3years
some have read it as 3mths instead of 12mths....

That was pretty much my take on it. I assumed he meant, "We will increase rates at the first possible opportunity. If there is doubt in our minds, we'll increase rather than hold". Kinda like the batsman getting the benefit of the doubt. Rate rises get the benefit of the doubt.

mbga9pgf

Sounds as if there is a little disparity between the BOE (only ones able to auth QE) and the government (survival reliant upon QE).

purch

There's a small disparity between what this Bean bloke say's one day to the next, also.

Methinks this 'roadtrip' idea will turn out to be a mistake.

Central Bankers and the Public should be kept well apart !!!

tomterm8

Generali wrote: »

That was pretty much my take on it. I assumed he meant, "We will increase rates at the first possible opportunity. If there is doubt in our minds, we'll increase rather than hold". Kinda like the batsman getting the benefit of the doubt. Rate rises get the benefit of the doubt.

My take on it was that some bloke said they may or may not raise rates, as soon as possible, which may or may not be between tomorrow and the next ice age.

I don't think there is a chance of them tightening rates until quite a while after they have decided to end QE. Basic economics says fiscal tightening should happen before monetary tightning, when the deficit is sky high.

ruggedtoast

Generali wrote: »

That was pretty much my take on it. I assumed he meant, "We will increase rates at the first possible opportunity. If there is doubt in our minds, we'll increase rather than hold". Kinda like the batsman getting the benefit of the doubt. Rate rises get the benefit of the doubt.

Incidentally I have promised my wife that I will clean the bathroom using a very similar metric.

As soon as possible. ie. As soon, as is possible, based on the things that I consider make it impossible, like Top Gear being on.

Bloo_Loo

ruggedtoast wrote: »

Incidentally I have promised my wife that I will clean the bathroom using a very similar metric.

As soon as possible. ie. As soon, as is possible, based on the things that I consider make it impossible, like Top Gear being on.

manjana banking