UK interest rates held at 0.5% for years

lvader

Thrugelmir wrote: »

These measures need to put into context of the state of the UK's finances. Government, consumer and critically the banks. QE had more to do with providing the banks with a life jacket to keep them operationally afloat.

The government was just as bankrupt as the banks, QE bailed out the government as well.

grey_gym_sock

badger09 wrote: »

I'm having a very belated mid life crisis :rotfl:

at the right time - when you can afford it

grey_gym_sock

lvader wrote: »

The government was just as bankrupt as the banks

far from it - the problems of public finances are greatly exaggerated. it's mostly just 1 effect of the larger problems of the economy (OK, so quite serious ).

buglawton

Once the unemployment rate starts to close in on that dangerous 7%, govt will do 2 things:
Cut the minimum wage
Open the floodgates to let in workers from even poorer countries

Solved! Interest rates at 0.5% forever.

grey_gym_sock

or they could stop fiddling the unemployment figures so much.

nah, only kidding

Glen_Clark

buglawton wrote: »

Once the unemployment rate starts to close in on that dangerous 7%, govt will do 2 things:
Cut the minimum wage
Open the floodgates to let in workers from even poorer countries

Solved! Interest rates at 0.5% forever.

Yes I do think you have a point, the Government is effecttively cutting wages by not increasing them in line with the real rate of inflation. And unemployment has long been used as a tool to control the workers, so I can't see the Government cutting it below 7%.
But the main purpose of all this is to take the focus away from inflation when deciding interest rates so savers can be robbed at a faster rate.

lvader

grey_gym_sock wrote: »

far from it - the problems of public finances are greatly exaggerated. it's mostly just 1 effect of the larger problems of the economy (OK, so quite serious ).

So if we had been in the Euro and no option of printing money we would have been fine? :rotfl:

standinman2009

At rate unemployment figures are falling we should see a rise in less than 12 months ,but I recon mr carney well come up with another reason then to keep it low .
Go back home mr carney ,you screwed up Canada don't damage the uk economy further !

talexuser

Did he really screw up Canada? I thought the current thinking was that their banks were in a much better position to weather the crunch in the first place, having much less sub-prime type debt, and that their recovery was on the back of the USA's stimulus?

So not quite so much of a superman, although now portrayed as the straw that we must clutch.

sabretoothtigger

Canada has a much greater position then most countries, its a gigantic place full of valuable resources
Its the worlds second largest country with half our population