BoE hints at earlier and larger rate rises - BBC

veryintrigued

http://www.bbc.co.uk/news/business-42986729

Glen_Clark

Is this the interest rate rise they have been predicting ever since they introduced the 'Emergency' 0.5% interest rate 9 years ago?

talexuser

Maybe it's different this time round, but after so many regular announcements of possible interest rate increases the past now nearly 10 years, you do get rather blase about how serious they really are. Particularly if things go badly in the Brexit negotiations.

Filo25

This time I think it probably is for real, global growth is stronger, inflationary pressures perceived to be rising and at least on headline unemployment rates a very tight labour market.

Bond yields generally been on the rise as well.

In the absence of any major shocks I would expect rates to go to 0.75% in May and they will see how the economy responds, it looks like most central banks are likely to move towards tightening policy.

Unsurprising really, it is hard to justify keeping emergency rates in place in the face of a strengthening global economy.

Of course if asset prices throw a fit in the face of expected tightening they may think again!

xylophone

but after so many regular announcements of possible interest rate increases

"Talk's cheap, money buys houses".....as my old grannie used to say.:D

talexuser

If, after all, we get 0.75%, it could be that for a while, and collective memory starts to forget, still nowhere near normal historical rates. So the next upset in the economy we can reduce to 0.25% emergency again? How long can this go on, and through how many economic cycles?