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Debate House Prices
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What will Mervyns excuse be this time?
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There is a fine line between "doing a u turn" and responding to events.0
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Could be because most of his expectations have been wrong.
... What's happening now is exactly what he said would happen, why does he need an excuse for being right?This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com0 -
How credible do you think it would be now if the BofE did a U-turn on their current policy when they have already recently predicted again that inflation will rise before dropping back, and with no other catalyst in sight for such a change of policy?
It would be non-sensical.
I think they would lose considerably more credibility if they made an increase for the sole reason of trying to look credible, cracking logic there.This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com0 -
How credible do you think it would be now if the BofE did a U-turn on their current policy when they have already recently predicted again that inflation will rise before dropping back, and with no other catalyst in sight for such a change of policy?
It would be non-sensical.
I thought that perhaps after the last decade the term 'when in a hole stop digging' would have been thought of.
I don't see inflation falling back, energy (of which we are a net importer now) will continue to rise on the back of peak production of oil (as we are currently seeing). This will continue to push up the price of everything, especially if we keep the pound devalued.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.0 -
As a small business, we are finding that the larger suppliers are now adding in inflation price increases of 3-4% because "that is what inflation is" and nothing to do with import prices. It is a mindset which could easily run away with itself.That is the biggest danger.
The BOE at the very least needs to address the situation by talking in a manner that at least gives the impression that a tightening is possible, sooner rather than later.
I read the above 2 posts with interest this morning.
As the day has progressed, I have noticed that local childcare providers have sent us invoices for the childcare they provide for students here.
Interestingly, every single one of them increased prices from January. Most are blaming the VAT rise. However the average increase is 7%:eek:
Sounds to me that ILW's contacts are not the only ones pricing inflation in...It's getting harder & harder to keep the government in the manner to which they have become accustomed.0 -
lemonjelly wrote: »I read the above 2 posts with interest this morning.
As the day has progressed, I have noticed that local childcare providers have sent us invoices for the childcare they provide for students here.
Interestingly, every single one of them increased prices from January. Most are blaming the VAT rise. However the average increase is 7%:eek:
Sounds to me that ILW's contacts are not the only ones pricing inflation in...
That was my point.
Suppliers are now increasing prices to factor in future inflation, which is in turn fuelling inflation. It could get out of hand without a strong message that it will not be allowed to happen.0 -
Suppliers are now increasing prices to factor in future inflation, which is in turn fuelling inflation. It could get out of hand without a strong message that it will not be allowed to happen.
In all seriousness and leaving aside the debate-jousting that goes on here, it is an impossible situation.
What do you mean by 'strong' message? I think you mean a large interest rate hike or series of hikes to get there - correct me if I'm wrong.
In the year of massive government cuts.
Which are going to hit everyone, most of all the middle-classes. And businesses.
Which are just getting back on their feet after a difficult couple of years.
Some of which may form your customer base.
Are you not a turkey wishing for Christmas?0 -
Quite true, what I find puzzling is the bullish posters tell us that a rise in rates (upto 3-3.5%) won't make any difference to the mortgage/housing market, yet when this subject arises they argue against rises like their lives depend on it.
A small rise at this time would be timely, it would indeed send a message to the markets that we do care about our currency and that it is worth more than toilet paper. It would strengthen the pound a little and perhaps reduce some of that imported inflation that is making everyone poorer.
It just seems that we are keeping the IR low to keep bailing out the over-leveraged, I for one think that these people have had enough time now to reduce their debts.
lol, at least the bull gang are up front in why they want low rates. The bears try to wrap themselves in a thin veneer of caring for the economy, but its as clear as day that they think an increase in interest rates is directly equatable to a decrease in house prices. At least have the courage to admit that you want a rate rise because you want to pick up a bargain repo.
I love this board.
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That was my point.
Suppliers are now increasing prices to factor in future inflation, which is in turn fuelling inflation. It could get out of hand without a strong message that it will not be allowed to happen.
Wouldn't increasing the cost of credit have a negative impact on your business too though?0
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