The Bank of England must get it right soon

DervProf

........I thaaaaank you.

Heyman_2

How close are we to seeing the Moneyweek 'graph' on this thread then - surely we must be at the 'New Paradigm' phase by now? :T

Graham_Devon

Anyway, I believe the BOE is still being bullish, but also believe part of it's job is to be bullish. They come across as even slightly pessimistic, and markets, sterling, the economy will just fall down around them.

Therefore, I believe the BOE will always be overly optimistic. I'd even go so far as to call it a small part of the stimulus package, allbeit, free.

We all know you can talk the market and economy up (to a point) so I fail to see why the BOE, while trying to bring the country into growth, would do anything to brash and not be a little overoptimistic when, carrying out, what is basically an educated guess.

IveSeenTheLight

Graham_Devon wrote: »

Anyway, I believe the BOE is still being bullish, but also believe part of it's job is to be bullish. They come across as even slightly pessimistic, and markets, sterling, the economy will just fall down around them.

Therefore, I believe the BOE will always be overly optimistic. I'd even go so far as to call it a small part of the stimulus package, allbeit, free.

We all know you can talk the market and economy up (to a point) so I fail to see why the BOE, while trying to bring the country into growth, would do anything to brash and not be a little overoptimistic when, carrying out, what is basically an educated guess.

I'm sure I've seen bearish comments from Mervyn King posted on here.
I'll do a quick search which would effectively dissprove your BoE is always overly optomistic belief

[edit]
Here's a few
https://forums.moneysavingexpert.com/discussion/2465661

https://forums.moneysavingexpert.com/discussion/2216877

https://forums.moneysavingexpert.com/discussion/1582761

https://forums.moneysavingexpert.com/discussion/1095365

https://forums.moneysavingexpert.com/discussion/1093281

[/edit]

purch

On top, the Bank said in August 2009 that inflation was "more likely to be below target in the medium term than above". Yet the cost of living has been over the 2% target in 42 out of the last 51 months

A statement made in August 2009 concerning events in the medium term, cannot surely be tested until at least 2014 !!!

I would think that only people in their 90's or older would consider 12 months to be 'the medium term' :eek:

IveSeenTheLight

purch wrote: »

A statement made in August 2009 concerning events in the medium term, cannot surely be tested until at least 2014 !!!

I would think that only people in their 90's or older would consider 12 months to be 'the medium term' :eek:

Certainly the definition of short, medium or long term seems to be personal rather than general.

Personally, it also depends what your referring to.

As most posts in here are about houses, I see it as: -

Short term (usually 2-3 year but will extend to 5)
Medium Term (usually 5-10 year, but could extend to 15)
Long Term (10 year + but would extend to 15 -25 years)

Housebear51

Now the bank of England is saying that low returns for savers is part of their strategy so people eat into their capitol.

They view your assets as something that belong to them.

They view the average saver as rats in a cage.

They are getting frustrated that their magic money added to the supply isnt working.

Now they will try and say its the savers who are to blame for the crisis.

Yes we will spend our savings if its going to be losing value in a savings account.

The only thing one can do is buy gold and silver bullion.

Generali

Housebear51 wrote: »

Now the bank of England is saying that low returns for savers is part of their strategy so people eat into their capitol.

Why do you think Central Banks change interest rates? This isn't news! It's in every A'Level economics text book.

JonnyBravo

Housebear51 wrote: »

The only thing one can do is buy gold and silver bullion.

If only I knew somewhere to get it from though. I'm worried about holding pieces of paper saying I've got some gold. Is it ok to buy it off some guy off e-bay? Can anyone help?

Heyman_2

JonnyBravo wrote: »

If only I knew somewhere to get it from though. I'm worried about holding pieces of paper saying I've got some gold. Is it ok to buy it off some guy off e-bay? Can anyone help?

Here ya go -

http://cgi.ebay.co.uk/1kg-0-5kgPure-Gold-Bullion-Ingot-99-99-Johnson-Matthey-/320597468631?pt=UK_Coins_Bullion_Bars_SM&hash=item4aa51925d7