Bank of England Rate Stays Same

richgirl

markets tend to fall more rapidly then they rise, SO..... at some point there will likely be panic in the housing market

People that think this time is different, are just deluding themselves. When prices fall they will gather a momentumn of their own, and those looking to buy now, will no longer be willing buyers !

Why buy when in six months it will likely be 10k cheaper ?

realwildone

It takes time for all these increases to bite. Who can keep paying all these increases of 16% +20+ etc for fuel, food, council tax, mortgages without it starting to hurt.

If I get £300.00 a week and you keep increasing my outgoings I eventually go bust... why do people not see it with relation to the housing market.

People really are pretty ignorant and they only wake up when it's too late.

Joe_Bloggs

Do the interest rates, inflation rates, growth rates, taxation rates of our economic neighbours influence the inflation prediction on the models used by the Bank of England. I thought we had a gloabal economy. I'm sure this is also simulated by the Bank of England. I hope it can cope with duff statistics.

J_B. (Will the model fit on a floppy.)

movieman

As mentioned, no-one really expected a raise this week, but most expect one more before the end of the year, and we'll probably see more next year too. The only reason rates have been so low is because China has been exporting deflation to us and companies have been swallowing the increased cost of fuel and commodities, and both are now coming to an end.

As import prices rise and companies pass on the rises to customers, the only hope to reduce inflation is increasing rates to cut local demand and raise the value of the pound.

manhattan

realwildone wrote:

It takes time for all these increases to bite. Who can keep paying all these increases of 16% +20+ etc for fuel, food, council tax, mortgages without it starting to hurt.

If I get £300.00 a week and you keep increasing my outgoings I eventually go bust... why do people not see it with relation to the housing market.

People really are pretty ignorant and they only wake up when it's too late.

talking about food prices! have you seen the price of bread lately? £1 a loaf! lol

Arch-Angel

sanfrancisco wrote:

No one did. All Economists polled (49 I think) in the City this week ALL thought it would be a HOLD.

Very true. However, the same Economists were also asked if they though interest rates would rise before the end of the year - around two-thirds though that they would rise...

Can't remember where I read this, so I may be referring to a different survey to yours. However, the survey I read had everyone (perhaps with one dissenter) prediciting a HOLD for September, but a RISE before the end of the year.

meanmachine_2

And have you seen the cost of the Sunday Times? Now going up to two QUID!

Standard also up to 50p.

Ridiculous.