BoE keeps rates at record low 0.5 pct for 22nd month

C_Mababejive

Whether you are a home owner or not,this is bad news for everyone who has money to spend,be it on basics such as food and fuel or luxuries.

This policy represents a total mismanagement of economic policy in this country and is a deliberate act by those with power,control and influence to steal money from us all to pay for the mistakes of Government and the banks.

Anyone who thinks they are getting a good deal out of it is deluding themselves.

It is akin to using a bucket to bail out a sinking life boat

http://www.youtube.com/watch?v=YwDAPIFPggY

DervProf

stringsmk2 wrote: »

Can you imagine the amount of posting on this board and others when rates do go up.

We'll here comments like : Timber, This is the start of the next leg down, etc etc... it will be painful to say the least

It won't be as bad as the whinging by the media and the moaning from some members of the public. And what will the Labour party come out with ? "We introduced 0.5% interest rates, and the coalition government have taken them away, they're not helping hard working families like we did". But weren't interest rates independantly set by the BoE ? "Erm, well sort of. We created the economic conditions so that rates could be set a record low levels". What, a credit crunch ? "Errrrr, no, the Americans caused that, it was their fault". Oh, I see.

DervProf

ILW wrote: »

What about homeowners with savings?

As a homowner with savings, I'd rather see interest rates at a slightly higher level. That would probably lead to lower inflation and better returns on my savings.

worldtraveller

U.K. government bonds fell, pushing the yield on the 10-year gilt close to the highest in almost eight months, as accelerating inflation fuelled speculation the Bank of England may expedite an interest-rate increase.

The pound headed for its biggest weekly gain against the dollar since October, and weakened versus the euro. The cost of goods at U.K. factory gates increased 0.5 percent from November, a report showed yesterday, above the 0.4 percent forecast by economists.

A report due Jan. 18 is forecast to show consumer- price inflation remained above the government’s 3 percent target for a tenth straight month in December. Consumer prices are forecast to rise 3.4 percent from a year earlier.

“If we continue to get price data leaning in this direction it’s going to add more pressure,” said Peter Chatwell, a fixed-income strategist at Credit Agricole Corporate & Investment Bank in London.

“The market is going to be looking for comments from the Bank of England, anything which gives them a clue that there could be a greater probability of rate hikes.”

Ten-year bond yields rose 10 basis points in the week to 3.61 percent as of 5:21 p.m. in London, after reaching 3.65 percent on Jan. 12, within half a basis point of the highest since May 19. The two-year note yield climbed 13 basis points to 1.33 percent.

“Short-dated gilts are definitely reacting to the threat of higher policy rate,” said Sam Hill, a fixed-income strategist at RBC Capital Markets in London. “The reality probably is that the Bank of England foresees a very nasty mix of risks to lower growth and risks to higher inflation.”

Bloomberg

whatyadoinsucka

this current rise in prices of food, fuel, energy is due to the fact that the UK is importing virtually everything and we are at the mercy of overseas market forces.

If china stopped exporting and just consumed the goods they make, we'd be all USCWAP
The UK will one day take food handouts like we supplied in the 80's to africa