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BOE leave rates unchanged at 0.5pct......

135

Comments

  • And yet another nail in the British economy.

    Rates MUST rise
  • AD9898_2
    AD9898_2 Posts: 527 Forumite
    chucky wrote: »
    really??? how many people are benefiting from low mortgage rates?

    No idea, probably less than are being hit in the pocket when they do their food shop or fill up their car up etc..

    TBH the future for the over leveraged is likely to be bleaker than the last 18 months for sure. Let's hope they're paying diwn their debts rather than buying Chinese tat.
    Have owned outright since Sept 2009, however I'm of the firm belief that high prices are a cancer on society, they have sucked money out of the economy, handing it to banks who've squandered it.
  • chucky
    chucky Posts: 15,170 Forumite
    10,000 Posts Combo Breaker
    AD9898 wrote: »
    No idea, probably less than are being hit in the pocket when they do their food shop or fill up their car up etc..

    TBH the future for the over leveraged is likely to be bleaker than the last 18 months for sure. Let's hope they're paying diwn their debts rather than buying Chinese tat.
    a balanced point of view and not too far from the truth
  • ....as expected

    Not quite.
    6 people in here thought there would be a 0.25% rise.
    More shockingly, 5 people thought there would be a 0.5% rise :eek:

    https://forums.moneysavingexpert.com/discussion/3039648
    :wall:
    What we've got here is....... failure to communicate.
    Some men you just can't reach.
    :wall:
  • ILW
    ILW Posts: 18,333 Forumite
    At what point does a temporary blip in inflation become just inflation. The blip seems to have lasted a couple of years.
  • Generali
    Generali Posts: 36,411 Forumite
    10,000 Posts Combo Breaker
    ILW wrote: »
    At what point does a temporary blip in inflation become just inflation. The blip seems to have lasted a couple of years.

    There is lowish inflation right now, especially if you strip out the VAT rises.

    Is inflation a problem at present? Probably not for the economy as a whole although it will be causing some pain to individuals with tight budgets no doubt.
  • lisyloo
    lisyloo Posts: 30,094 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    How does increasing rates help inflation when most of it is coming from commodity prices and tax increases.
    We don't have rampant demand that needs dampening down.
    I think people need to think it through rather than make an automatic connection.
    I think the traditional connection between rates and inflation is currently broken.
  • DervProf
    DervProf Posts: 4,035 Forumite
    edited 10 February 2011 at 2:21PM
    ILW wrote: »
    At what point does a temporary blip in inflation become just inflation. The blip seems to have lasted a couple of years.

    Don't worry, Merv remains vigilant.

    He's obviously not being very vigilant on inflation, so what is he keeping his eye on I wonder ?
    30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.
  • DervProf
    DervProf Posts: 4,035 Forumite
    lisyloo wrote: »
    How does increasing rates help inflation when most of it is coming from commodity prices and tax increases.
    We don't have rampant demand that needs dampening down.
    I think people need to think it through rather than make an automatic connection.
    I think the traditional connection between rates and inflation is currently broken.

    A lot of the commodities that we buy are imported.

    Isn't the value of the £ related to interest rates ?

    I've thunk it through, and if I am correct, a stronger £ (due to higher interest rates) might make imported goods cheaper, and therefore inflation lower.

    OK, please correct me on this, because I admit that I don't have a detailed understanding of global economics.
    30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.
  • Generali
    Generali Posts: 36,411 Forumite
    10,000 Posts Combo Breaker
    DervProf wrote: »
    A lot of the commodities that we buy are imported.

    Isn't the value of the £ related to interest rates ?

    I've thunk it through, and if I am correct, a stronger £ (due to higher interest rates) might make imported goods cheaper, and therefore inflation lower.

    OK, please correct me on this, because I admit that I don't have a detailed understanding of global economics.

    What you say is right but to make a large impact on the price of imports you'd have to see a very large rise in the value of sterling.
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