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U.K. M4 Money Supply Unexpectedly Drops In December
inspector_monkfish
Posts: 9,276 Forumite
U.K.'s M4 money supply decreased 1.1% month-on-month in December after an increase of 0.1% in November, data from the Bank of England showed Thursday. Economists had forecast 0.9% rise in December.
http://www.rttnews.com/Content/AllEconomicNews.aspx?Node=B2&Id=1185663
http://www.rttnews.com/Content/AllEconomicNews.aspx?Node=B2&Id=1185663
Please take the time to have a look around my Daughter's website www.daisypalmertrust.co.uk
(MSE Andrea says ok!)
(MSE Andrea says ok!)
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Comments
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Backs up you're feeling for no IR hike until early 2011 I suppose?
Dang!It's getting harder & harder to keep the government in the manner to which they have become accustomed.0 -
I climb back from thinking rates could increase in the first half.
That view lasted, what 2-3 days.
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Where are the inflation 'nutters'.
More grist for Generali's mill though.US housing: it's not a bubble
Moneyweek, December 20050 -
lemonjelly wrote: »Backs up you're feeling for no IR hike until early 2011 I suppose?
Dang!
yeah baby !!
Please take the time to have a look around my Daughter's website www.daisypalmertrust.co.uk
(MSE Andrea says ok!)0 -
It's not a good sign with base rates at half a percent.
Out of interest, DAK how much QE there was in December? I think M4 has so far fallen in months with little or no QE.
The cycle seems to be, BoE runs out of QE so m-o-m M4 falls so BoE announces more QE. I think there was QE in December however so that is potentially a worrying sign - if M4 is falling despite QE.
It's probably just the weather or something though.
The other thing I wanted to ask is, DAK what the data series VYHB is? It's described as 'Net other assets' by the Bank of England in their M4 calculation and has fallen by £158,000,000,000 over the past year and £38,500,000,000 in the last month alone!
http://www.bankofengland.co.uk/statistics/m4/2009/dec/provm4.pdf0 -
09:36 21Jan10 IGBP/USD: Extends South After UK M4 Money Supply Shock
London, January 21.
Cable has fallen to a fresh 8-day low of 1.6162 on the back of the disclosure
that UK M4 broad money supply fell by 1.1% last month. A 0.9% increase was
expected, to follow a 0.1% rise in November. The disappointing number is bad newsfor hawks calling for a Spring/Summer Bank Rate hike. Bank Rate has been at 0.5%since last March.Please take the time to have a look around my Daughter's website www.daisypalmertrust.co.uk
(MSE Andrea says ok!)0 -
It's not a good sign with base rates at half a percent.
Out of interest, DAK how much QE there was in December? I think M4 has so far fallen in months with little or no QE.
The cycle seems to be, BoE runs out of QE so m-o-m M4 falls so BoE announces more QE. I think there was QE in December however so that is potentially a worrying sign - if M4 is falling despite QE.
It's probably just the weather or something though.
The other thing I wanted to ask is, DAK what the data series VYHB is? It's described as 'Net other assets' by the Bank of England in their M4 calculation and has fallen by £158,000,000,000 over the past year and £38,500,000,000 in the last month alone!
http://www.bankofengland.co.uk/statistics/m4/2009/dec/provm4.pdf
I'm not even sure what that says, let alone the answers to your questions:D It's getting harder & harder to keep the government in the manner to which they have become accustomed.0 -
silly question of the day maybe - but where is it going to?
is it still being soaked up by balance sheets or is it going into equities - where's it going?0 -
I think M4 has so far fallen in months with little or no QE.
Strip out the QE which amounts to about 8.5-9% , and M4 is contracting on an annual basis. :eek:
It is a similar story in the U.S (M2). and Euro La La Land (M3)
Money Supply is contracting.
Not only will Interest Rates not be increasing anytime soon, I wouldn't be expecting much GDP growth either for a good few quarters.'In nature, there are neither rewards nor punishments - there are Consequences.'0 -
I climb back from thinking rates could increase in the first half.
That view lasted, what 2-3 days.
:rotfl:
I never had that view. Not even for 2-3 seconds.;)“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0
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