How long can the BoE keep rates from rising?

FTBFun

Graham_Devon wrote: »

So, in summary. Interest rates CAN be used to fight inflation.

Yet we on this forum simply suggest they cannot. That was what I was asking you to explain.....your assertion that nothing can be done about any type of inflation. There are of course variables within that....but the blank "interest rates cannot fight inflation" plastered all over the place is disingenuous.

Who says they cannot? I haven't - just not for the UK at present - they were certainly appropriate during the 1980s boom for instance which was credit-fueled.

Radiantsoul

HAMISH_MCTAVISH wrote: »

Of course they can.

But only some types of inflation. (without the collateral damage being a bigger problem than the inflation)

The caveat is quite important.

HAMISH_MCTAVISH

Radiantsoul wrote: »

The caveat is quite important.

It's extremely important.

But it seems Graham can only see black or white, never the infinite shades of grey in between.

chucknorris

As expected rates held at 0.5%

RenovationMan

DervProf wrote: »

Oh dear Renoman. You have to revert to inaccuracy, again.

I looked for these "nasty comments" from Graham in this thread, and I see none.

Anyway, I haven't seen you around here much over the past week or two. I wonder why you are here today ?

Well I have been posting every day, so perhaps the reason you haven't seen it is because you haven't been here until today? I notice from your other post on the other interest rate related thread that you had a pop at me there too. It's almost as if you are spoiling for a fight.

Is it that time of the month again?

DervProf

RenovationMan wrote: »

Well I have been posting every day, so perhaps the reason you haven't seen it is because you haven't been here until today? I notice from your other post on the other interest rate related thread that you had a pop at me there too. It's almost as if you are spoiling for a fight.

Is it that time of the month again?

I was going to ask you the same question.

I`ve been around, but not posting every day.

Fight ? Nah, maybe just a little verbal jousting. What drew my attention to you today was your accusation that Graham was being nasty towards you. I simply pointed out that I didn't see anything nasty in what he typed.

BTW. I also helped you out by replying to your statement about your farmhouse and how pleased you are with interest rates being held down. I take it that's what you wanted. some recognition of how well you are doing ?

Procrastinator333

I think most people miss the more important question. Does the boe WANT to curb inflation? While they will never state it publicly, there is clearly a policy of allowing / ignoring inflation. So the question of whether interest rate rises would reduce current infltion are irrelevant. The boe wants inflation.

It really is pretty simple. The boe will not raise interest rates until at least 1 of the following occurs.

1) economy demonstrates sustained growth. My guess is they want something like annualised rate of 3% min for 3 quarters.

2) inflation goes in to an exponential climb.4,5,6% rates of inflation will privately be thought of as a good thing.

RenovationMan

DervProf wrote: »

I also helped you out by replying to your statement about your farmhouse and how pleased you are with interest rates being held down. I take it that's what you wanted. some recognition of how well you are doing ?

Oh get over it DervProf.

DervProf

RenovationMan wrote: »

Oh get over it DervProf.

Calm down, I'm not being nasty to you, as I know you get upset.

RenovationMan

DervProf wrote: »

Calm down, I'm not being nasty to you, as I know you get upset.

With these low rates, I'm crying all the way to the bank. :rotfl: