BOE MPC voted 6-3 to hold rates in Feb

Generali

maveli wrote: »

lol,
seriously, what will happen ?

The Chairman of the MPC (who is also Governor of the Bank of England) holds the casting vote in this case.

http://www.bankofengland.co.uk/about/legislation/1998act.pdf

Page 27.

The Chairman is only supposed to put forward a vote that can command a majority so it should never happen that his casting vote would be needed as a compromise should be agreed in advance.

Heyman_2

Interesting to note that even though it's currently a 6-3 split, those 3 don't completely agree with each other.

You have Sentance saying that it's time to get rates up as the economy can withstand it, but the other 2 see an uncertain economic outlook and it would appear they are favouring a small rise simply to test the water.

I don't really see how this translates into rates going up next month or even the month after that as some people here are getting enthusiastic about, although the revised Q4 2010 GDP figures are due before next month's meeting, so they may have an impact if they're better than expected.

Sentance leaves the MPC in May this year, remember.

tara747

Generali wrote: »

From the horse's mouth:

Remember, there is nothing that says that base rates have to change by 0.25% (25 basis points) each time. If interest rates rise they may well rise faster and higher than many expect.

I bl00dy well hope so.

inspector_monkfish wrote: »

Extra Time, then Penalties....

:rotfl::rotfl::rotfl:

tara747

Heyman wrote: »

Interesting to note that even though it's currently a 6-3 split, those 3 don't completely agree with each other.

You have Sentance saying that it's time to get rates up as the economy can withstand it, but the other 2 see an uncertain economic outlook and it would appear they are favouring a small rise simply to test the water.

I don't really see how this translates into rates going up next month or even the month after that as some people here are getting enthusiastic about, although the revised Q4 2010 GDP figures are due before next month's meeting, so they may have an impact if they're better than expected.

Sentance leaves the MPC in May this year, remember.

Oh great, then they can get another Blanchflower or Bean to replace him. :mad:

Heyman_2

tara747 wrote: »

Oh great, then they can get another Blanchflower or Bean to replace him. :mad:

Not necessarily, although it would be good to see 'Danny' Blanchflower back in the fold

Generali

tara747 wrote: »

Oh great, then they can get another Blanchflower or Bean to replace him. :mad:

Sentance is an external appointee, ie his replacement will be chosen by the Chancellor of the Exchequer.

ILW

All this fuss about base rate may rise to 1%.
1% !!!!!!!!!!

Generali

ILW wrote: »

All this fuss about base rate may rise to 1%.
1% !!!!!!!!!!

A couple of years ago, 1% would have been a record low.

ILW

Generali wrote: »

A couple of years ago, 1% would have been a record low.

A couple of years ago, 1% would have been totally unbelievable.

IveSeenTheLight

The_Fox wrote: »

It's hillarious, people i am talking to this morning have got it in their heads that the BOE will be raising rates by 1.5% over a year, and then thats it.
What i think will happen is there will be raises of 0.25%, and everytime they do so there will be little if no impact on inflation. I can see rates back to some kind of historical norm within 3 years, maybe as high as 8 or 9%.

That is hillarious