are we expecting the pound to drop further?

jimjames

talexuser wrote: »

No it doesn't say "we will". It says "let us give" which means what it means so no amount of semantic backtracking actually changes that.

Politicians must have thought their dreams had come true. The ability to say, promise and claim whatever you want with absolutely no requirement to deliver on any of it. Of course we can't do what they said - they weren't speaking on behalf of the government.

lesta1980

talexuser wrote: »

Words mean what they absolutely mean, otherwise "let's give" can mean "let's not give", which is obvious nonsense.

not that it matters but that poster got pulled straight away because it was wrong. the bus on the other hand had the correct message....

anyway sure there is other threads you can go an argue about brexit issues on in the economy board:j

jamesd

stringer_bell wrote: »

any ideas? I get paid in dollars. I was earning 53p to every dollar and now it is 82p ... is it possible the pound could reach parity with the dollar?

That and more is possible. Even ignoring the likely negative view when notice is given and when the notice expires undoubtedly without a trade deal in place there's the interest rate mixture with the US closer to raising interest rates than the UK.

Thrugelmir

jamesd wrote: »

there's the interest rate mixture with the US closer to raising interest rates than the UK.

The US may lead the world in the transformation back to normal rates. Given so many currencies peg against the greenback.

silverwhistle

Pincher wrote: »

Suddenly, GBP1=EUR3, and skiing in Courchevel is dirt cheap. All the riffraff will be there too, bum. I'll check out Aspen, if it gets to GBP1=USD3.

With the advantage in Colorada that you can smoke what you're smoking legally, I believe?

I suspect there are fewer Russians in Courchevel these days due to economic considerations, so maybe not so bad. Fewer candidates for Darwin awards too.

Glen_Clark

jamesd wrote: »

the US closer to raising interest rates than the UK.

I thought they raise interest rates to dampen inflation. With the recent fall in the pound against the dollar doesn't that make inflation more lkely in the UK?

bowlhead99

Glen_Clark wrote: »

I thought they raise interest rates to dampen inflation. With the recent fall in the pound against the dollar doesn't that make inflation more lkely in the UK?

Interest rate rises have been on the cards in the US for some time now, assuming the economic indicators continue to be OK it is just a matter of what month will they pick.

By contrast in the UK the rates have been deliberately lowered to stimulate the economy /stave off a potential decline in investment and employment due to lack of business confidence. And BoE said inflation might well overshoot the long term target, before it stabilises, because they are not going to apply the brakes yet.

jimjames

Glen_Clark wrote: »

I thought they raise interest rates to dampen inflation. With the recent fall in the pound against the dollar doesn't that make inflation more lkely in the UK?

That has normally been the case however it's a different situation now. Using interest rates to control inflation has been described as like pulling a brick with a piece of elastic so it's not exactly a science.

bigadaj

jimjames wrote: »

That has normally been the case however it's a different situation now. Using interest rates to control inflation has been described as like pulling a brick with a piece of elastic so it's not exactly a science.

Economics never is.

Thrugelmir

jimjames wrote: »

That has normally been the case however it's a different situation now. Using interest rates to control inflation has been described as like pulling a brick with a piece of elastic so it's not exactly a science.

Depends on the type of inflation. At the current time raising rates will strengthen the £. Reducing imported inflation. There's little sign of roaring inflation on the back of wage rises. public sector has 3 more years of 1% alone.