Bank of England leaves monetary policy unchanged

worldtraveller

• MPC holds Bank rate at 0.25pc
• Maintains government purchases at £435bn
• Maintains corporate bond purchases at £10bn

No surprise there then!

wotsthat

Seems like a long time ago when the crashaholics were warning we'd be in trouble when our ultra-low fixed rates finished and we wouldn't be able to afford the mortgage.

Eight years. I still have to pinch myself.

Thrugelmir

worldtraveller wrote: »

No surprise there then!

What was the vote though.

Wait until the minutes are released to obtain a fuller understanding.

worldtraveller

Thrugelmir wrote: »

What was the vote though.

Wait until the minutes are released to obtain a fuller understanding.

Patently, I can wait, if I so wish, for such information, should I want a "fuller understanding". However, at this time, today, I'm purely stating my view, as with no doubt the majority of people, that it's no surprise that there hasn't been a change this month.

Thrugelmir

worldtraveller wrote: »

Patently, I can wait, if I so wish, for such information, should I want a "fuller understanding". However, at this time, today, I'm purely stating my view, as with no doubt the majority of people, that it's no surprise that there hasn't been a change this month.

Given Carney's forward guidance. No reason to expect any change. The Fed have clearly signalled there intentions in the short term. A couple more rises appear likely this year. At what point will this influence the BOE.

One mortgage lender offering good 2 year fixes. Has already switched from fee free to £995. Might not be interest but still a cost to be borne.

michaels

8-1 was actually a surprise although the 1 is leaving in June so perhaps they will find someone more hawkish to replace her....

However I think there is a new political wind with the ascendant wing of the Tory party being much more of the 'its not right to have such low rates with savers being penalised and the profligate benefiting' so I can see rates being increased when under the Osborne regime they wouldn't have done, Carney being a political placeman after all.

GreatApe

michaels wrote: »

and the profligate benefiting

you mean the state with its £1.8318 trillion credit card?

Thrugelmir

michaels wrote: »

However I think there is a new political wind with the ascendant wing of the Tory party being much more of the 'its not right to have such low rates with savers being penalised and the profligate benefiting' so I can see rates being increased when under the Osborne regime they wouldn't have done, Carney being a political placeman after all.

Carney only holds one vote. The BOE was granted the powers precisely for the reason to make the decision non political. Rather a balancing act though. As the BOE doesn't want to curtail growth but has to monitor indebtedness. A fragile line exists.

[Deleted User]

UK CPI inflation now 2.3% year on year.

Discuss?

WR

StevieJ

Just glad I have plenty of NS&I inflation adjusted certs RPI now 3.2%

davomcdave

Thrugelmir wrote: »

Carney only holds one vote. The BOE was granted the powers precisely for the reason to make the decision non political. Rather a balancing act though. As the BOE doesn't want to curtail growth but has to monitor indebtedness. A fragile line exists.

I agree.

There is a myth that the BoE's MPC only exists to control inflation. That's not correct.

As inflation continues to rise over the next 10-12 months after the fall in the pound I fully expect the BoE to sit on its hands. If the pound continues to fall I fully expect the BoE to intervene at some point.