No Interest Rate rise until 2016 due to poor Wage Growth

moneyinmypocket

Now now graham don't be angry just because IR are staying low, the bank have to think what's best for the country as a whole.

Graham_Devon

wotsthat wrote: »

24 hour news has a lot to answer for - it has to be filled with something - speculative white noise usually.

It wasn't that long ago that I didn't know (or care) that my mortgage was going up or down until I received a letter from the Halifax letting me know.

While true that 24 hour news allows us to witness all this.....Carney still has to state what he does in order for us to witness it through the news.

Can't really blame the news in this instance. The news is doing it's job.

AndyGuil

Inflation needs to be looking to rise over the next year for there to be an interest rate rise. That isn't happening yet.

N1AK

Graham_Devon wrote: »

While true that 24 hour news allows us to witness all this.....Carney still has to state what he does in order for us to witness it through the news.

I will admit I have found Carney's guidance irritating; when it isn't vague it is invariably misleading. The markets repeated notable responses to new guidance show that his prior guidance painted a misleading picture.

In his defence, I think he has actually done the right things so far. Restricting high risk lending, rather than increasing rates to discourage it, is hopefully controlling the countries exposure once rate rises come about. Delaying rate rises until wages are also improving makes sense, as many people will now struggle to service debts on current incomes if rates rise.

There have also been some unusual aspects to the UK recovery. Typically we'd have lost more jobs during the crash (instead we spread less work/pay over more jobs) and typically during a recovery we'd have seen wages rising by this point. This isn't a bad thing, as unemployment falls we will invariably see wages pushed up as companies have to compete for a scarcer resource, it's just happening a little slower than one would expect. Carney was likely expecting, like everyone else, that as unemployment fell we'd also see wage increases and now he hasn't is adjusting his position.

Bantex_2

Why does Carney feel the need to keep making "announcements" that say nothing, or hint at something and then come up with the opposite a few weeks later?

wotsthat

Graham_Devon wrote: »

While true that 24 hour news allows us to witness all this.....Carney still has to state what he does in order for us to witness it through the news.

Can't really blame the news in this instance. The news is doing it's job.

It's not the reporting I have an issue with. It's the endless conspiratorial analysis that the media engage in that winds me up. One talking head after another lining up to give their own 'unique' take on what's been said. The media give too much credibility to people based on their willingness and availability to fill space.

It's everywhere. Radio 4 will have a big interview with a minister for example and then, before they've even shuffled out of the studio door, up will pop Nick Robinson who will explain, for the hard of understanding, what the minister said, or didn't, just a few minutes before. This commentary can take up almost as much time as the interview itself.

Obviously as someone who spends too much of his own time spouting opinions on what is close to random information I can see the irony.

michaels

For fear of sounding lime a ukip supporter it appears.that what had not been anticipated is that the available labour pool is not the few million not working in the uk but the 30m not working in the EU. Add in the increase in the labour force from pushing up retirement ages along with the very poor annuity rates available le partly as a result of zirp and suddenly the breakdown in the relationship between employment levels and wage pressure becomes obvious.

adr0ck

michaels wrote: »

For fear of sounding lime a ukip supporter it appears.that what had not been anticipated is that the available labour pool is not the few million not working in the uk but the 30m not working in the EU. Add in the increase in the labour force from pushing up retirement ages along with the very poor annuity rates available le partly as a result of zirp and suddenly the breakdown in the relationship between employment levels and wage pressure becomes obvious.

this is spot on

this is why carney is flapping - he has no experience of this

CLAPTON

Carney is a man out of this depth and visibly drowning.


His knowledge of the UK economy is poor, his understanding of the labour market is poor and his knowledge of our housing market is poor, his knowledge of how politics works here is poor.


He also lacks any understanding of how our newspapers / TV operate.


He was probably silly enough to believe the wave of hero worship he received when he arrived and thought that it would last.

AndyGuil

CLAPTON wrote: »

Carney is a man out of this depth and visibly drowning.


His knowledge of the UK economy is poor, his understanding of the labour market is poor and his knowledge of our housing market is poor, his knowledge of how politics works here is poor.


He also lacks any understanding of how our newspapers / TV operate.


He was probably silly enough to believe the wave of hero worship he received when he arrived and thought that it would last.

A closed border country with 30 million or so people and a very stable economy over the recession is quite a big contrast to the UK.