MPC may raise Interest Rates to 6% in August!

sm9ai

Generali wrote: »

Which means that my £6 bet on an interest rate fall that was matched at average odds of 120-1 is looking like a better bet by the day.

Marvellous.

Complete waste of money*. If you have a look at this page - http://newsvote.bbc.co.uk/1/shared/fds/hi/business/market_data/currency/default.stm

You will see what is happening to the £ vs the $.

If this falls we import inflation. If we cut the interest rate this will plummet hence inflation will soar. So there is no way the bank can cut the rate.
Additionally swap rates are at 6.36% :eek:

The next rate rise will be up. Although probably not for a few more months.




* However if it does come off then congrats!

Generali

sm9ai wrote: »

Complete waste of money*. If you have a look at this page - http://newsvote.bbc.co.uk/1/shared/fds/hi/business/market_data/currency/default.stm

You will see what is happening to the £ vs the $.

If this falls we import inflation. If we cut the interest rate this will plummet hence inflation will soar. So there is no way the bank can cut the rate.
Additionally swap rates are at 6.36% :eek:

The next rate rise will be up. Although probably not for a few more months.




* However if it does come off then congrats!

I placed the bet on the basis that the odds are way out. I reckon the most likely outcome from the current position is a hold. However if we replayed the scenario from last week through to the MPC meeeting 120 times, I reckon you'd see a rate cut more than once.

That makes my bet a good one right now (although possibly not as good after the next MPC meeting!). I hope to close out the bet in the days before the meeting anyway and make enough for Mrs Generali and I to have a nice meal out somewhere locally.