BREXIT - vote leave for lower house prices

Miss_Samantha

masterwilde wrote: »

a percentage of products will be more expensive by about ???? but bear in mind that the weakening pound since 2008 has made things more expensive by ????

The Pound weakened quite a bit in 2008-2011 and that did push inflation up to 5%.

Always interesting how so many forum commenters know more than the Bank of England.

masterwilde

5% thanks...so you expect inflation to go above 5% if we exit EU.

Interest rates cannot go up quickly and will never go up like the 80's as now the younger generation are much more exposed to credit and as such it would cause too much havoc to the UK economy.

The government, Bank of England, international leaders are simply attempting to scare the british public on the ignorance that they do not research and know no better.

No one, i repeat no one, can tell you how good or bad it would be if we exited as everything is being assumed at this point.

Miss_Samantha

If you refuse to listen and think...

thesaint

Deleted_User wrote: »

£2,000 is hardly going to help everyone get on the ladder.

Remember, it's "at least" £2000.

brit1234

masterwilde wrote: »

5% thanks...so you expect inflation to go above 5% if we exit EU.

Interest rates cannot go up quickly and will never go up like the 80's as now the younger generation are much more exposed to credit and as such it would cause too much havoc to the UK economy.

The government, Bank of England, international leaders are simply attempting to scare the british public on the ignorance that they do not research and know no better.

No one, i repeat no one, can tell you how good or bad it would be if we exited as everything is being assumed at this point.

To quot game of thrones "You know nothing".

The financial markets like certainty and react badly if there is not. If we leave despite the base rate being kept at 0.5% the cost of borrowing will go up considerably. This is because banks have moved from lending money based on their savers to borrowing money on the international markets at exceptionally low rates (think international QE). British lenders will be charged more to borrow these funds and have to pass these costs to the borrowers.

Much of the goods we have in this country are now imported from abroad including resources and food. That is why we have a huge trade deficit. Leaving will weaken the £ even more than now and it will cost more to buy these goods pushing up inflation. To counter this interest rate rises are needed to strengthen the £.

So you have likely higher bank rates made higher on top of bank of England base rate rises.

If people have borrowed to much it is their fault being reckless. They shouldn't be basing their borrowings on record ultra low interest rates.

masterwilde

like the game of thrones quote

Bank of England would not be able to raise rates as the uk economy in theory will be going downhill, further unemployment, and a scarily high debt per person ratio.

import/export is very funny, as each statistic has them very close so in essence it looks almost 50/50 therefore a weakening or strengthening of the £ in economic terms has both advantage/disadvantage.

The average joe in this country might find there bills go up, however i doubt it would be anymore than a standard budget talk.

We are now living as you say in the age of record low interest rates, we live with QE and no country has either done well or bad out of it (forget eu as different rules no independent currency). The USA have printed over $1trillion, have they really improved much, if at all? and i do mean really. The UK is in a similar position.

Miss_Samantha

What would happen to people's savings if inflation picked up but rates remained very low?

A would be FTB might lose several percentage points every year of the deposit she is trying to save...

masterwilde

Miss Samantha, excellent question!

as they are not directly linked and the BOE is allegedly independent that could/should happen.

A FTB would in theory be losing out, but the government may step further on that matter with regard to the home buying program, thus both helping the FTB and attempting to stabilize a potential falling property market.

Miss_Samantha

A fairy tale answer to every question, I see.

masterwilde

fairytale that the government would support the housing market further? like they have done for several years now? take your blinkers off