Raise interest rates to prop up the pound?

Garethgrew

Will interest rate return to normal sooner to stop the pound plunging any further?

[Deleted User]

Sterking will steady next week, my bet for what its worth is that the next move on rates will be to 0% for a short period.

PixelPound

House prices look to be stagnating, with some debate as to whether they will fall / are falling, so doubt interest rates would go up just yet.

Thrugelmir

Garethgrew wrote: »

Will interest rate return to normal sooner to stop the pound plunging any further?

Why the panic? Plenty of noise because the majority of the market got it wrong. Who cares if Investment Bankers got a bloody nose.

UK exports benefit by the way.

Jon_B_2

Thrugelmir wrote: »

Why the panic? Plenty of noise because the majority of the market got it wrong. Who cares if Investment Bankers got a bloody nose.

UK exports benefit by the way.

Swings and roundabouts.

I work in food manufacture and whilst we export about 5% of our turnover into the EU. We import far more raw materials from the EU.

Thrugelmir

Jon_B wrote: »

Swings and roundabouts.

I work in food manufacture and whilst we export about 5% of our turnover into the EU. We import far more raw materials from the EU.

Euro fluctuates all the time. Since it was formed. £ has varied between €1.05 and €1.78. No one ever got uppity before while it gyrated around.

Jon_B_2

Thrugelmir wrote: »

Euro fluctuates all the time. Since it was formed. £ has varied between €1.05 and €1.78. No one ever got uppity before while it gyrated around.

Absolutely, my point was only designed to illustrate that even if a business exports - they are likely to import as well.

globalds

Jon_B wrote: »

Swings and roundabouts.

I work in food manufacture and whilst we export about 5% of our turnover into the EU. We import far more raw materials from the EU.

Then hopefully if the pound falls you will export more

padington

The question will be what is Europe going to do now. They are stuck in what some people may perceive as a sinking ship.

Weak countries in the EU may well become major targets, well before the UK.germany and France shares are down 12% ....

Generali

padington wrote: »

The question will be what is Europe going to do now. They are stuck in what some people may perceive as a sinking ship.

Weak countries in the UK will become major targets, not the UK.

Do you mean 'in the EU'?

I suspect that we'll find that the UK has just made itself one of the weak countries. Still, time will tell.

Thrugelmir

Generali wrote: »

Do you mean 'in the EU'?

I suspect that we'll find that the UK has just made itself one of the weak countries. Still, time will tell.

Far stronger than Eastern and Southern Europe though.