BOE MPC raises interest rates by 0.25% to 0.75%

System

LHW99 wrote: »

I think its remit is to keep inflation close to 2% and to explain by letter if it is more than 1% above or below that target.

Yes, but its a little pedantic to spell it out when its obvious that I mean its remit is to bring inflation down from its current 2.4%.

System

venison wrote: »

Personally I would have thought right now that increasing the inflation target to 2.5% would have been a better idea, as for savers don't expect to see a rise in rates anywhere near 0.25% if any.

Thank goodness the MPC does not followed your advice, which is unsurprising, since you, like me, are a complete nobody, and your advice to the MPC is not important. I will wait to see what the banks do with their savings rates, rather than take your word, presuming to speak on the banks' behalf, as god given gospel. Savings rates have already been rising nicely, even before this base rate rise.

[Deleted User]

Ozymandias73 wrote: »

Thank goodness the MPC does not followed your advice, which is unsurprising, since you, like me, are a complete nobody, and your advice to the MPC is not important. I will wait to see what the banks do with their savings rates, rather than take your word, presuming to speak on the banks' behalf, as god given gospel. Savings rates have already been rising nicely, even before this base rate rise.

really??:rotfl:

westernpromise

Having been rumbled, Crashymandias appears to have deleted his account!

chucknorris

westernpromise wrote: »

Having been rumbled, Crashymandias appears to have deleted his account!

Keep an eye out for a newbie poster, who is a millionaire airline pilot or barrister who desperately wants another 0.25% on the base rate.

westernpromise

The ironic thing is that any interest rate rises over the next year or so are not to prevent the economy overheating or inflation getting out of hand. If they were, a series of rises might eventually produce for Crashymandias (the 23-year-old doctor with a £450k house in Chelsea in 1993) the price falls he needs.

No, in reality this rise went through pretty explicitly so that it can be reversed again post-Brexit. This is probably why it has fallen so flat. My guess is that rates will be back at 0.5% by the end of 2019.

Jonbvn

westernpromise wrote: »

The ironic thing is that any interest rate rises over the next year or so are not to prevent the economy overheating or inflation getting out of hand. If they were, a series of rises might eventually produce for Crashymandias (the 23-year-old doctor with a £450k house in Chelsea in 1993) the price falls he needs.

No, in reality this rise went through pretty explicitly so that it can be reversed again post-Brexit. This is probably why it has fallen so flat. My guess is that rates will be back at 0.5% by the end of 2019.

If I send a link of your post to my bank, do you think they will suspend the increase on on our tracker mortgage.

BTW, I think perhaps you are right.

Thrugelmir

westernpromise wrote: »

No, in reality this rise went through pretty explicitly so that it can be reversed again post-Brexit. This is probably why it has fallen so flat. My guess is that rates will be back at 0.5% by the end of 2019.

The Fed's actions will influence global interest rates. Without increasing rates the UK would simply suffer even higher imported inflation. The BOE has no magic wand to wave. Just the ability to make movements orderly.