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Debate House Prices
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i think the argument with the wage spiral is.
1. continue with inflation, which in the end forces the wage spiral through growth.
2. continue with inflation which kills growth and we probably end up a mess - possibly deflationary...
3. inflation goes down and we have no large amounts of growth and no big wage rises.
number 3 or maybe number 1 are the most likely outcomes IMO.
More likely 3.
Favourable winds recently for the MPC. Rising £, reducing imports, rising exports, reducing debt levels, temporary inflationary factors.
Not to say that the wind won't suddenly change.0 -
This talk of a wage-price spiral seems a bit wide of the mark though, don't think there has been anything in the stats to indicate that it's a possibility???
I don't really see how wages are going to increase with 2,500,000 on the dole. The only caveat is that apparently there is an increasing gap between educated and/or skilled people that are retaining their jobs and getting pay rises and less skilled people that are more likely to struggle to get something.Is that the last Sentance vote? IIRC, they are replacing him with a more dovish vote.
I think he goes in May. I don't know if May is his last MPC or the first one for the newbie,0 -
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I don't really see how wages are going to increase with 2,500,000 on the dole. The only caveat is that apparently there is an increasing gap between educated and/or skilled people that are retaining their jobs and getting pay rises and less skilled people that are more likely to struggle to get something.
I think he goes in May. I don't know if May is his last MPC or the first one for the newbie,
Then again many could not understand why wage rates (hence inflation) were subdued during the Brown boom years. Or was that the great moderation.'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0 -
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Then again many could not understand why wage rates (hence inflation) were subdued during the Brown boom years. Or was that the great moderation.
Immigration would have been a significant influence in supressing pay rates for unskilled and manual labour. Also technology has played its part in simplifying administrative tasks in service industries where a high proportion of the private sector are employed.0 -
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Thrugelmir wrote: »Mortgages come to a natural end every month.
New borrowers will be subject to current rates.
The low rate era is over.
What I meant was that old style fixed rates typically reverted to base + 1.5 (for Direct Line), base +2% (Nationwide) etc etc, but generally in a range of 1.5 - 2.5% above base.
Not as low as some of the daft lifetime trackers that were sold, but pretty low all the same.
Close to 70% of the market is variable rate at present - which tells you something.
HSBC do some cracking base rate + x % deals if you have the equity.
The market must be pretty fragmented between those on great deals, perhaps overpaying and those who have little equity and are paying through the nose.0 -
What I meant was that old style fixed rates typically reverted to base + 1.5 (for Direct Line), base +2% (Nationwide) etc etc, but generally in a range of 1.5 - 2.5% above base.
Not as low as some of the daft lifetime trackers that were sold, but pretty low all the same.
Close to 70% of the market is variable rate at present - which tells you something.
HSBC do some cracking base rate + x % deals if you have the equity.
The market must be pretty fragmented between those on great deals, perhaps overpaying and those who have little equity and are paying through the nose.
BR + 1.89% and no fees at the moment.
http://www.money.co.uk/mortgages/mortgage-details/HSBC/Term-BBR-1-89-LTV-60-Special-Direct-No-Fee.htm'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0 -
RenovationMan wrote: »When did it end? My tracker rate is 2.05% above BoE, as someone else has noted, it's not quite the 0.5% above BoE available years ago but it's still an amazingly low rate. This was arranged in May 2010, so perhaps the low rate era ended in June 2010?
I was referring to those who remortgaged onto sub 1 % or even .35% above base for life.
The days when banks were competing to give away money.0
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