We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
Debate House Prices
In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non MoneySaving matters are no longer permitted. This includes wider debates about general house prices, the economy and politics. As a result, we have taken the decision to keep this board permanently closed, but it remains viewable for users who may find some useful information in it. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
RPI 4.4%; CPI 3.4%; BoE In Denial
Comments
-
Charterhouse wrote: »But the Bank of England has made it very clear that they absolutely love a weak pound.
Of course they do it encourages exports.'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0 -
But higher interest rates will cause Sterling to appreciate thus reversing a major part of the cost plus inflation, agree longer term it is wages that matter.
Not necessarily. If sterling is considered overvalued then higher interest rates will be demanded by the market to offset the currency risk.0 -
Thrugelmir wrote: »Not necessarily. If sterling is considered overvalued then higher interest rates will be demanded by the market to offset the currency risk.
Is that not the same? i.e if those higher interest rates were not forthcoming then Sterling would fall.'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0 -
Is that not the same? i.e if those higher interest rates were not forthcoming then Sterling would fall.
FWIW, I think it's the same thing.
The Aussie dollar is way above anything that would be considered a normal level using 'purchasing parity theory'*. That is because Australian interest rates are way above those of all 1st tier/reserve currencies (US Dollar, Euro, Pound, Japanese Yen) and pretty much all 2nd tier ones (eg The Loonie (Canadian Dollar - you can't leave a nickname that great unsaid), Swiss Franc, Hong Kong Dollar Thai Baht, Sth African Rand etc).
The Quid is falling against the Aussie $ as even as a retail investor you can put money on deposit for a year for 6% at a High Street 'Big 4' bank over here.
*that is that the exchange rate between currencies should be such that what a pound will buy should be the same as what a pounds worth of Aussie Dollars, US Dollars, Euro, Vietnamese Dong etc should be able to buy once you adjust for risk.0 -
The Quid is falling against the Aussie $ .
From my experience in Aus, it used to be surprisingly expensive to live in terms of what the locals get paid.
Has the dramatic strengthening of the Aus dollar changed things much?“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
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.5K Banking & Borrowing
- 254.4K Reduce Debt & Boost Income
- 455.5K Spending & Discounts
- 247.4K Work, Benefits & Business
- 604.2K Mortgages, Homes & Bills
- 178.5K Life & Family
- 261.7K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.7K Read-Only Boards