Carney indicates BOE likely to cut interest rates + possible Quantitative Easing

Conrad

We all ran round like headless chickens when the pound fell, but the IMF has been urging up to an 18% devaluation to benefit our economy for a while

Don't you just love those facts....

Conrad

iantojones40 wrote: »

Yeah OK Mrs Carney, whatever you say.

Assuming you're not joking or being ironic that is one of the most ludicrous things I've ever heard, the guy is a louche, incompetent fraud... he's not capable of doing anything other than kicking the can further down the road.
He genuinely looks scared now, as though even he realizes he is way out out of his depth.

Chancellor Leadsom will hopefully sack the negative little tyke

Graham_Devon

michaels wrote: »

Is this the same Mark Carney who was threatening interest rate rises prior to the vote?

Glad someone else has noticed.

Was less than a month ago that he was suggesting if we leave the EU interest rates would have to rise. That led to the BBC running a few articles about how your mortgage costs will rise if we leave the EU.

Now that we have voted to leave, we get the opposite from Carney.

Mindyou, we'll probably get something opposing what he said this week in the next couple of weeks. He's always making announcements about what they will do - very rare that they actually do it.

wotsthat

I don't remember Carney suggesting interest rates would increase as a result of Brexit other than if there was a Sterling crisis. He did say the cost of borrowing might rise as the 'kindness of strangers' we rely upon might lead them to think the UK is a higher risk borrower. I note two ratings agencies have now downgraded the UK.

That's different from supporting the economy following, what I assume, is lowered investment during the campaign and, now, for a few years hence due to the additional uncertainty of the result.

DiggerUK

worldtraveller wrote: »

The Bank of England is likely to have to cut interest rates over coming months to cushion the blow to the economy from the Brexit vote, its governor, Mark Carney, has said.........

The Brexit vote did not cause an economic crisis. That ten ton gorilla was already in the room. Bremain would also have left it in the room.

It's just dozey claiming that a cross in a box in the UK has got world markets in a tiz again.
Many here can't understand that lower central bank rates are the new norm, and a large order of QE on the side.

The referendum has become no more than a diversion from the reality of an economic crisis that is not resolved..._

kinger101

Conrad wrote: »

Don't you just love those facts....

Can you provide a reference?

worldtraveller

The Bank of England is poised to slash interest rates to close to zero this week as fears mount over a Brexit-induced recession.

Economists believe the Monetary Policy Committee (MPC) will cut rates to a new low of just 0.25% on Thursday, while markets have priced in a 75% chance of more easing.

Bank of America Merrill Lynch believes policymakers will reduce rates to as low as 0.1%

A cut would be the first change in interest rates since March 2009, when the base rate was slashed to 0.5%

The Telegraph

I would imagine that this (0.25%) has largely been priced into the markets already, but it'll be particularly interesting to see how it affects Sterling, should there be a cut, or not, of course. With a cut of over 0.25%, we would probably see Sterling heading much nearer to the USD1.20 level that several analysts have said is likely anyway later this year.

worldtraveller

Thirty-nine of the 60 economists polled by Reuters on Wednesday said the Bank would chop at least 25 basis points from the 0.5% Bank Rate has sat at since early 2009 on Thursday.

The median forecast was for a cut to 0.25%, with 35 of 60 saying so; two forecast a 50 basis point cut to zero and another two said 40 basis points to 0.10%.

Financial markets have almost completely priced in a cut on Thursday.

A July 5 Reuters poll found just 19 of 52 economists predicting any change this week, with the consensus for more easing to come later in the year, yet so much has changed in a very short period of time.

Since the referendum, sterling has sunk 12% to a 31-year low against the dollar, and will probably fall another 3% according to that July 5 poll.

Reuters

Conrad

IMF argued for months the pound was 12-18% over valued and hurting competitiveness, a rate fall can only help keep it down, excellent

House prices will fall, punters have been spooked not by the fundamentals but by project fears months of gloom mongering, but TBH I would like FTB to find homes a little more affordable for a brief period

wotsthat

When I started my mortgage journey in the '90's I wouldn't ever have perceived being on a nice long fix at 2.29%. Even less would I have imagined looking at 2.29% and thinking it looks a bit expensive!