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CBI Publishes its predictions for economy in 2010
Comments
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I didn't have you down as that naive, Really. :eek:
Why wouldn't it.
Why am I naive? becase I don't think the change of government will not make any difference to the Independant BOE.
Even if the government had any sway why would a conservative government want to raise rates quickly?
Rates will be set on economic recovery and need (if we had prolonged high inflation) not just because we have a new government.
The days of a crackpot setting the rate on a wim as long gone. It is now done by a rate setting committee and praise the lord it is.0 -
I Don't have you down as a conspiracy theorist Carol, why would a change of government change the way BOE sets it's base rate?
Its seen as the last throw of the dice for a major crash,million dollar question who ever gets in are they really gonna wreck whats left of a fragile market.Official MR B fan club,dont go............................0 -
Personally I think with a weak recovery 2% looks a bit high.
In reality that is going to be 6X .25% increases. I think that is a bit much in one year unless we get prolonged inflation over 3% after June. Or strong growth (can't see that one TBH)
But good for them to put their ball on the line so to speak.0 -
Why am I naive? becase I don't think the change of government will not make any difference to the Independant BOE.
Even if the government had any sway why would a conservative government want to raise rates quickly?
Rates will be set on economic recovery and need (if we had prolonged high inflation) not just because we have a new government.
The days of a crackpot setting the rate on a wim as long gone. It is now done by a rate setting committee and praise the lord it is.
If the BoE really is independent why then did Gordon Brown, rather than Mervyn King, announce the cut in interest rates in October 2008?
It is quite fantastic to think that the BoE is truly independent. I would wager that QE started at 11 Downing Street...0 -
If the BoE really is independent why then did Gordon Brown, rather than Mervyn King, announce the cut in interest rates in October 2008?
It is quite fantastic to think that the BoE is truly independent. I would wager that QE started at 11 Downing Street...
Was that not the announcement that several nations were cutting at once? The coordinated cut, all the central banks wanted to deep cut but not screw their currency so they had to agree before all actioning it.
Can't see any other way than leaders brokering it first IMHO. How else could you play out a multi nation cut?
But did he announce it or was it the BOE?
http://www.guardian.co.uk/business/2008/oct/08/marketturmoil.creditcrunch0 -
I thought you weren't reading my posts?
Crash announced the cut, to the house of commons. It was political. He wanted to take credit for it.0 -
I thought you weren't reading my posts?
Crash announced the cut, to the house of commons. It was political. He wanted to take credit for it.
Announcing something does not necessarily mean you partook in the decision.:wall:
What we've got here is....... failure to communicate.
Some men you just can't reach.
:wall:0 -
Wasn't some of the stimulus created in harmony with the interest rates?
I'm sure I remember Brown stating "they", i.e. the labour party had decreased interest rates and we therefore were in the best position along with their spending programme.
He said something like it at their last party conference, I'm sure he did?
And he's stood in the commons plenty of time shouting out low interest rates as if he had partaken in the actual setting of them, but he blamed the BOE when they went up.
I'm pretty sure the BOE are independant. However, I think it would be foolish to think the government did not have a major, if not the biggest amount of input and persuassion into what the BOE actually do.0 -
Was that not the announcement that several nations were cutting at once? The coordinated cut, all the central banks wanted to deep cut but not screw their currency so they had to agree before all actioning it.
And other than the UK there'll be un-cordinated increases in interest rates the G20 countries during 2010.
So if UK interest rates are held down to aid the recovery. The Gilt yield will increase further, thereby increasing the cost of servicing the debt, and increased importation costs for oil and gas as 2 primary examples.
So which ever way the game plays out the thumb screws are on.
Lower interest rates, higher taxation in the longer term.
The UK Government of the day will not be in control of our destiny. More than likely will be responding to international factors.0
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