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GDP up but slowing - rate cut?

Zxcv_Bnm
Zxcv_Bnm Posts: 98 Forumite
in Debate House Prices & the Economy
GDP was up 0.2% in 4Q last year within which December was down 0.4%.

Sounds ominous, rate cut coming up do we think?
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Comments

  • spadoosh
    spadoosh Posts: 8,732 Forumite
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    Rates need to rise in order to be able to offer any protection of a pending recession.

    Dropping the interest rate by 0.25% or even going to 0% interest rates isnt going to offer the neccessary incentives to boost spending.

    Basically rates are too low for us to be in a recession or more specifically there isnt enough movement available in interest rates to be able to use them to stave off a recession.

    The bofe has been too concerned with managing inflation using interest rates so when we need interest rate movements to promote growth we just dont have any flexibility with them.

    No rate drops until the UK hits recession.
  • Zxcv_Bnm
    Zxcv_Bnm Posts: 98 Forumite
    Inflation down from 2.1 to 1.8% in December

    Rate cut coming I reckon
    https://www.ft.com/content/0bd7f64e-2f72-11e9-8744-e7016697f225
  • movilogo
    movilogo Posts: 3,227 Forumite
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    At least ours is still rising :p! In Eurozone (= Germany, Italy) it is falling into recession.

    I heard if we stay in EU, by 2022 all member countries must adopt Euro :eek:
    Happiness is buying an item and then not checking its price after a month to discover it was reduced further.
  • StevieJ
    StevieJ Posts: 20,174 Forumite
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    movilogo wrote: »
    At least ours is still rising :p! In Eurozone (= Germany, Italy) it is falling into recession.

    I heard if we stay in EU, by 2022 all member countries must adopt Euro :eek:


    Have you got a link for that?
    'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher
  • spadoosh
    spadoosh Posts: 8,732 Forumite
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    StevieJ wrote: »
    Have you got a link for that?

    Im assuming its a mixture of headlines like this....

    https://www.telegraph.co.uk/finance/economics/10935617/After-2020-all-EU-members-will-have-to-adopt-the-euro.html


    And what is essentially written in article 109.1j of the maastricht treaty which states EU members must adopt the Euro as soon as they hit the relevant standards set.

    The UK (and Denmark) have an opt out.


    There has been talk from EU officials of wanting to get rid of any opt outs. And Poland has also faced criticism of its opt out.

    So the timing of it is certainly wrong, theres just no guarantee all the countries who have to adopt the Euro will have met the standards by then. But the premise of the story is pretty much there. Fact is, every EU member (Excluding the UK and Denmark) will have to adopt the Euro as soon as they meet the criteria.
  • StevieJ
    StevieJ Posts: 20,174 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    So not the UK then (if we were to remain)?
    'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher
  • webjaved
    webjaved Posts: 618 Forumite
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    StevieJ wrote: »
    So not the UK then (if we were to remain)?

    I guess so...
    Save £12k in 2019 #154 - £14,826.60/£12k
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  • spadoosh
    spadoosh Posts: 8,732 Forumite
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    StevieJ wrote: »
    So not the UK then (if we were to remain)?

    I wouldnt wish to speculate on that. Rules can change as quick as politicians. It was tony blair that abolished our opt out in the social chapter of the maastricht treaty. Im going to be uncomitting with it but i cant imagine it was high up on the list of reasons of why people voted for him. (ill be impressed if people even know about it).
  • smipsy
    smipsy Posts: 208 Forumite
    Sixth Anniversary 100 Posts Combo Breaker
    movilogo wrote: »
    I heard if we stay in EU, by 2022 all member countries must adopt Euro :eek:

    i heard the earth is flat, but I chose not to believe in nonsense just because someone said it :A
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    StevieJ wrote: »
    So not the UK then (if we were to remain)?

    Could be negotiated.
This discussion has been closed.
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