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

Generali

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.

"I will clean the bathroom when the conditions are right and when it is prudent to do so.

Since 1997, spending on bathroom cleaning products has increased by 142%, reversing the cuts in spending under my predecessor."

Thrugelmir

mbga9pgf wrote: »

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

QE isn't going to have a visible impact to the man on the street.

Thrugelmir

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?

Who wants to borrow?

Maybe those with debt of any kind have woken up to the fact that maybe it would be an idea to cut consumption and repay it, rather than borrow more.

Not what the Government wants. As this obviously cuts spending in the economy which reduces demand further.

A lot of areas of the country have now been hit. With major plant closures and layoffs, and reduced take home pay for workers.

Heyman_2

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.

I'm not sure that it's such a great idea having this guy doing a BofE tour and coming out with statements like that outside of the MPC meetings which are open to interpretation (or misinterpretation) in this climate. There's already enough uncertainty about without him adding to it, although I appreciate his intention was probably the reverse.

The problem with rate rises in the current situation is that the bank are going to have to evaluate where they think we'll be in 12-18 months and make their decision based upon that. But increasing the rate will have an immediate effect as everyone will assume that it is the start of a prolonged period of rate rises.

Generali

Heyman wrote: »

I'm not sure that it's such a great idea having this guy doing a BofE tour and coming out with statements like that outside of the MPC meetings which are open to interpretation (or misinterpretation) in this climate. There's already enough uncertainty about without him adding to it, although I appreciate his intention was probably the reverse.

The problem with rate rises in the current situation is that the bank are going to have to evaluate where they think we'll be in 12-18 months and make their decision based upon that. But increasing the rate will have an immediate effect as everyone will assume that it is the start of a prolonged period of rate rises.

Well it's the Central Banking style right now - it's all about openess and being predictible. I don't know if it's a mistake or not, personally.