BOE MPC - Interest Rates remain at 0.5%

worldtraveller

The pound has slipped to a near six-year low against the US dollar as prospects of a UK interest rate hike fade amid gathering gloom for the domestic and world economies.

Sterling was trading below $1.46, at its lowest level since May 2010, and was also sharply lower against the euro.

It comes after the British Chambers of Commerce warned that factory exports grew at their weakest level since 2009 late last year and that the UK manufacturing sector was "close to stagnation" .

Sky News

MFW_ASAP

Thrugelmir wrote: »

That's perception. Large figures need to be put into a context.

Little point in continued banker bashing. The "Management" has changed.

Not at Lloyds. Yet another scandal erupting, this time with them fiddling government debt.

MFW_ASAP

worldtraveller wrote: »

The pound has slipped to a near six-year low against the US dollar as prospects of a UK interest rate hike fade amid gathering gloom for the domestic and world economies.

Sterling was trading below $1.46, at its lowest level since May 2010, and was also sharply lower against the euro.

It comes after the British Chambers of Commerce warned that factory exports grew at their weakest level since 2009 late last year and that the UK manufacturing sector was "close to stagnation" .

Sky News

This is great news for my personal finances. Low interest rates for my massive mortgage and savers chasing returns by gambling in the stock markets increasing my pension.

I've had a good recession. Long may it continue!

worldtraveller

Manufacturing production dropped by 0.4% in November according to the Office for National Statistics data, compared to a 0.7% fall in the wider industrial sector.

• Total production output is estimated to have increased by 0.9% in November 2015 compared with the same month a year ago. There were increases in 3 of its 4 main sectors, with the largest contribution coming from mining & quarrying, which increased by 10.5%.
• Manufacturing output decreased by 1.2% in November 2015 compared with November 2014. The largest contribution to the decrease came from the manufacture of machinery & equipment not elsewhere classified, which decreased by 13.7%.
• Total production output is estimated to have decreased by 0.7% between October 2015 and November 2015. There were decreases in all of the main sectors, with manufacturing, mining & quarrying and electricity & gas having the largest contributions to the decrease.
• Manufacturing output decreased by 0.4% in November 2015 compared with October 2015. The largest contribution to the decrease came from the manufacture of basic pharmaceutical products & pharmaceutical preparations, which decreased by 4.9%.
• In the 3 months to November 2015, total production and manufacturing output increased by 0.2% and 0.5% respectively on the previous 3 months.
• In the 3 months to November 2015, production and manufacturing were 9.1% and 6.1% respectively below their values reached in the pre-downturn GDP peak in Quarter 1 (Jan to Mar) 2008.
• In this release, the only period open for revision was October 2015, in line with the National Accounts revisions policy.

ONS

caronoel

worldtraveller wrote: »

Manufacturing production dropped by 0.4% in November according to the Office for National Statistics data, compared to a 0.7% fall in the wider industrial sector.

• Total production output is estimated to have increased by 0.9% in November 2015 compared with the same month a year ago. There were increases in 3 of its 4 main sectors, with the largest contribution coming from mining & quarrying, which increased by 10.5%.
• Manufacturing output decreased by 1.2% in November 2015 compared with November 2014. The largest contribution to the decrease came from the manufacture of machinery & equipment not elsewhere classified, which decreased by 13.7%.
• Total production output is estimated to have decreased by 0.7% between October 2015 and November 2015. There were decreases in all of the main sectors, with manufacturing, mining & quarrying and electricity & gas having the largest contributions to the decrease.
• Manufacturing output decreased by 0.4% in November 2015 compared with October 2015. The largest contribution to the decrease came from the manufacture of basic pharmaceutical products & pharmaceutical preparations, which decreased by 4.9%.
• In the 3 months to November 2015, total production and manufacturing output increased by 0.2% and 0.5% respectively on the previous 3 months.
• In the 3 months to November 2015, production and manufacturing were 9.1% and 6.1% respectively below their values reached in the pre-downturn GDP peak in Quarter 1 (Jan to Mar) 2008.
• In this release, the only period open for revision was October 2015, in line with the National Accounts revisions policy.

ONS

Excellent news.

Kicks any potential interest rate rise into the long grass for a while longer...

DiggerUK

caronoel wrote: »

?......Kicks any potential interest rate rise into the long grass for a while longer...

Seems so. Is nobody interested in rates anymore..._

http://www.bbc.co.uk/news/business-35310256

worldtraveller

The Bank of England's newest policymaker Gertjan Vlieghe said on Monday he would take a "patient" approach to raising interest rates and there was even a chance he might favour a cut if a slowdown in Britain's economy worsened.

Underscoring how the mood at the BoE in the last few months has shifted away from signalling a first rate hike since before the financial crisis, Vlieghe also said economic growth and interest rates might be permanently lower.

Britain's economy has grown strongly over the past two years, raising expectations the BoE would not be far behind the U.S. Federal Reserve which raised interest rates last month.

But Britain's recovery lost some of its momentum in the second half of last year as the global economy slowed. Inflation is close to zero and any pick-up in prices will be limited by a fresh fall in oil prices.

Reuters

wymondham

I think a 'patient' approach to interest rates is code for no changes!

Seriously though, the fact they remain so low shows how bad UK PLC really is?? If they think we can't even take a .25% rise then its rocky indeed despite George telling us how wonderful things are..

Thrugelmir

wymondham wrote: »

Seriously though, the fact they remain so low shows how bad UK PLC really is?? If they think we can't even take a .25% rise then its rocky indeed despite George telling us how wonderful things are..

Economy highly dependent on consumer spending. George has changed his tune more recently in case you've missed that fact.

worldtraveller

The Bank of England cut growth forecasts on Thursday and the lone advocate of a rate hike reversed his position, suggesting rates were on hold for an extended period even as its governor said the next move was still likely to be up.

Echoing downbeat comments from central banks around the globe, BoE chief Mark Carney warned that global growth was only modest at best with risks rising as emerging economies struggle, holding back Britain despite its domestic resilience.

The BoE forecast Britain's economy would grow 2.2% this year and 2.3% in 2017, down from forecasts of 2.5% and 2.6% in November and barely changed from 2015.

Consumer price inflation is forecast to stay below 1% through 2016 -- longer than previously thought -- but then is forecast to rise to just over 2% in two years' time, similar to the last set of forecasts.

Reuters

So, Ian McCafferty has now even changed his spots!