BoE raise interest rates by 0.50% to 3.5%

Aberdeenangarse

As expected.

coypondboy

4.5% to be the peak next year so only 0.75% to go and then start falling at end of next year as election looms the following spring and tax cuts also but if labour don't win next time they will never get in.  Not sure how markets will react i.e pound to a labour govt but this one is more like a tory one tahn a Corbyn style one which is what we really need to help the poor and tax the rich.

housebuyer143

coypondboy said:

4.5% to be the peak next year so only 0.75% to go and then start falling at end of next year as election looms the following spring and tax cuts also but if labour don't win next time they will never get in.  Not sure how markets will react i.e pound to a labour govt but this one is more like a tory one tahn a Corbyn style one which is what we really need to help the poor and tax the rich.

Honestly, I'm not convinced labour will do much different to the Tories. There is only so much money. They all like to talk how they are all different but this time there isn't enough money to give people on benefits larger payouts and no money for payrise for public sector

oiltrader

coypondboy said:

4.5% to be the peak next year so only 0.75% to go and then start falling at end of next year as election looms the following spring and tax cuts also but if labour don't win next time they will never get in.  Not sure how markets will react i.e pound to a labour govt but this one is more like a tory one tahn a Corbyn style one which is what we really need to help the poor and tax the rich.

why would they start falling? Fed suggesting 5% rates. UK will follow and will prob stay there for the foreseeable 

propertyhunter

housebuyer143 said:

coypondboy said:

4.5% to be the peak next year so only 0.75% to go and then start falling at end of next year as election looms the following spring and tax cuts also but if labour don't win next time they will never get in.  Not sure how markets will react i.e pound to a labour govt but this one is more like a tory one tahn a Corbyn style one which is what we really need to help the poor and tax the rich.

Honestly, I'm not convinced labour will do much different to the Tories. There is only so much money. They all like to talk how they are all different but this time there isn't enough money to give people on benefits larger payouts and no money for payrise for public sector

I'm hoping Labour don't lose the money we do have to cronyism, fraud and ineptitude. Let's not forget what the conservatives have done - COVID loan fraud that Sunak decided not to investigate and instead wrote off, Michelle Mone, test and trace, PPE procurement - to name a few off the top of my head. On top of that a mini-budget that told us what we suspected - they don't care about the working or middle classes, just the super rich - and we're paying the cost of the fall out yet again. Fingers crossed Labour are a better option if they get into government because the British people deserve much more.  

ElwoodBlues

oiltrader said:

coypondboy said:

4.5% to be the peak next year so only 0.75% to go and then start falling at end of next year as election looms the following spring and tax cuts also but if labour don't win next time they will never get in.  Not sure how markets will react i.e pound to a labour govt but this one is more like a tory one tahn a Corbyn style one which is what we really need to help the poor and tax the rich.

why would they start falling? Fed suggesting 5% rates. UK will follow and will prob stay there for the foreseeable 

Exactly this. MPC and UK base rate is all a complete sham these days. Their sole objective is allegedly to manage inflation, yet UK interest rates are irrelevant when inflation is being caused by global (energy) prices. It's daft, but of course they'll never admit that the country isn't in control of it's own interest rates, just a puppet to the global economy.

And if they know rates need to be 4.5% to control inflation, they should have put them up to that rate 6 months ago. What's the point of advertising/threatening future rate increases, if it needs doing to control inflation (which some say has already peaked), do it immediately. 

SprostonGreenHead

We'll be paying for the Quantitive Easing and Covid spending for some time yet, and the BoE have to play along and pretend they are in control.

Interest rates are meant to combat inflation when people are spending too much by pushing people to save more and borrow less but when prices are increasing because of upstream supply-chain costs, and we have a cost of living crisis, attempting to use interest rates to control inflation will simply ensure people are hit harder than they need to be.

It's about time our government did what was right by the people who eleceted them rather than what the global economy and its actors deem necessary.

london21

Not surprised, saw it coming.

IAMIAM

I am presuming we are expecting 4% first week of February 

MattMattMattUK

IAMIAM said:

I am presuming we are expecting 4% first week of February 

One would suspect, yes, followed by tow 0.25% rises, bringing us to the best estimate of 4.5%. The government can then find a way to get the BoE to drop interest rates a bit before the next general election, which will likely be left as late as possible, so January 2025.