Are we expecting BOE to remain at 4.75% on 8th February 2025?

lojo1000

Yields continue to rise as markets realise the only way to keep the economy afloat in the near term (inside 5 years) is not only more monetary expansion but also getting this money into the hands of the working classes (since they spend it, not speculate with it) whilst also knowing this ultimately leads to hyper-inflation.

No central banker/politician has the stomach to admit (other than Milei who stated this prior to being elected) that increasing debt to stimulate an economy actually kills that economy.

Loosening your belt whilst eating more is not a long term solution to being overweight.

If you have a mortgage, I would pay it off as fast as possible (not financial advice!)

MeteredOut

lojo1000 said:

Yields continue to rise as markets realise the only way to keep the economy afloat in the near term (inside 5 years) is not only more monetary expansion but also getting this money into the hands of the working classes (since they spend it, not speculate with it) whilst also knowing this ultimately leads to hyper-inflation.

No central banker/politician has the stomach to admit (other than Milei who stated this prior to being elected) that increasing debt to stimulate an economy actually kills that economy.

Loosening your belt whilst eating more is not a long term solution to being overweight.

If you have a mortgage, I would pay it off as fast as possible (not financial advice!)

I'm glad you put that red arrow there, otherwise I'd not have noticed the trend.

In which direction would the arrow have been drawn towards the end of 2021?

Certainly interesting times though.

jobbywobbler

lojo1000 said:

Yields continue to rise as markets realise the only way to keep the economy afloat in the near term (inside 5 years) is not only more monetary expansion but also getting this money into the hands of the working classes (since they spend it, not speculate with it) whilst also knowing this ultimately leads to hyper-inflation.

No central banker/politician has the stomach to admit (other than Milei who stated this prior to being elected) that increasing debt to stimulate an economy actually kills that economy.

Loosening your belt whilst eating more is not a long term solution to being overweight.

If you have a mortgage, I would pay it off as fast as possible (not financial advice!)

Totally agree on the mortgage front, can this getting very sticky indeed

ReadySteadyPop

The best way to keep the economy afloat is cheaper housing, much cheaper, that way people have more money to spend into the real job creating economy.

lojo1000

ReadySteadyPop said:

The best way to keep the economy afloat is cheaper housing, much cheaper, that way people have more money to spend into the real job creating economy.

That's a nice wish.

MobileSaver

lojo1000 said:

ReadySteadyPop said:

The best way to keep the economy afloat is cheaper housing, much cheaper, that way people have more money to spend into the real job creating economy.

That's a nice wish.

It's not even that though really. A wish is generally regarded as something that could happen albeit highly unlikely; much cheaper housing is just pure fantasy - it's never going to happen in @ReadySteadyPop's lifetime.

Hoenir

Meanwhile mortgage rates will continue to harden. As normality finally returns. Days of cheap borrowing are over. QT is slowing draining liquidity out of the financial system. Through to 2027. Many mortgage holders yet to refinance onto new deals. 

Maka344

jobbywobbler said:

lojo1000 said:

Yields continue to rise as markets realise the only way to keep the economy afloat in the near term (inside 5 years) is not only more monetary expansion but also getting this money into the hands of the working classes (since they spend it, not speculate with it) whilst also knowing this ultimately leads to hyper-inflation.

No central banker/politician has the stomach to admit (other than Milei who stated this prior to being elected) that increasing debt to stimulate an economy actually kills that economy.

Loosening your belt whilst eating more is not a long term solution to being overweight.

If you have a mortgage, I would pay it off as fast as possible (not financial advice!)

Totally agree on the mortgage front, can this getting very sticky indeed

May I ask what this means for a layman. Thanks

jobbywobbler

Maka344 said:

jobbywobbler said:

lojo1000 said:

Yields continue to rise as markets realise the only way to keep the economy afloat in the near term (inside 5 years) is not only more monetary expansion but also getting this money into the hands of the working classes (since they spend it, not speculate with it) whilst also knowing this ultimately leads to hyper-inflation.

No central banker/politician has the stomach to admit (other than Milei who stated this prior to being elected) that increasing debt to stimulate an economy actually kills that economy.

Loosening your belt whilst eating more is not a long term solution to being overweight.

If you have a mortgage, I would pay it off as fast as possible (not financial advice!)

Totally agree on the mortgage front, can this getting very sticky indeed

May I ask what this means for a layman. Thanks

Stagflation - economy is sticky/retracts and inflation kicks in/up again - means no where to run.  

Interest rates remain higher than the Bank wants (not me) but also no growth/companies can't spend (or borrow) and the man on the street has less in his pocket (these pay increases are around the national living wage) many middle earners are sitting on frozen pay before anyone shouts).    

Reeves has thrown petrol on a pre-lit fire.

If wide spread jobs are cut next year due to NI increases (I know a few IT firms planning this now) then sticky becomes sludgy. 

jobbywobbler

Meant to add - NI increases in April will mean retailers bump their prices, leading to more inflation.    Happy Christmas