Rate increase in March - Will it happen or not?

UK007BullDog

another blatant bump

roswell

Hi UK007BullDog,

Im on a 84 hour stint of nights thats why the early morning bump.

I think its now anyones guess going on the stock markets globaly over the last 2 days there may be no raise or even a cut if this fall keeps rolling. But I wouldnt expect a cut this month.

epz_2

roswell wrote:

Hi UK007BullDog,

Im on a 84 hour stint of nights thats why the early morning bump.

I think its now anyones guess going on the stock markets globaly over the last 2 days there may be no raise or even a cut if this fall keeps rolling. But I wouldnt expect a cut this month.

i doubt it, as ive read it looked like someone thought the chinese government were going to start regulating their market more and it worried the investors.

as i see it inflation is caused by prices of goods and services going up, the drop in notional value of companies listed on the stock market dropping a couple of % over the very short term doesnt realy affect most people, otherwise the fact it doubled in the last few years would have caused massive inflation.

roswell

Correct Very short term it wouldnt be a problem I didnt say it would be.

But if this keeps rolling companys go bust, this causes a increase in unemployment which causes an lack of income and increasee in bad debts, people dont spend, goverments controll money supply but its people who keep the economy going, if a large portion of the population are unemployed the economy will slow down. And this normlay leads to interest rate cuts to try bring back growth.

ManAtHome

Also rumours going around that the Bank of China may be considering interest rate rises to cool things down a bit - that could have more impact on our inflation than anything BoE does.

roswell

ManAtHome wrote:

Also rumours going around that the Bank of China may be considering interest rate rises to cool things down a bit - that could have more impact on our inflation than anything BoE does.

That could be significant if it happens.

roswell

Asian looks like its going to have another day in the red.

This isnt a blatant dump.

Im sure there must be more MSE`s out there with a view on where interest rates will go this month.

raq

i agree. lot of people will crumble just by 0.25% never mind 0.50%

Generali

So where do we go from here? Rate rise to support the pound or cut to support the 'real economy' (aka asset price inflation).

UK007BullDog

It seems that all kinds of economists are gathering their thoughts. Not much out of useful news. I guess no one knows where things are heading to. We might have to wait until the weekend or next week to get a feel of what might happen.

Thankfully a lot of people remortgaging now go for a fixed option even if only for 2 years. Goodness knows what is happening next.

Did you hear about the under inflation payrises for the forces and the nurses? And no payrise at all for the GP's.