That time of the month - Interest Rates! [Jan 08]

merlinthehappypig

I'm seriously considering the index linked National Savings Certificates. That has to say something about the way the economy is going!

mystic_trev

A 'Hold' well done Merv - I should think Brown and Darling are now foaming at the mouth. I bet they'll now sack him!

HugoSP

With any luck Brown and Darling will take some serious action, like reducing duty on fuel.

....yeah right!

poppy10_2

mystic_trev wrote: »

A 'Hold' well done Merv - I should think Brown and Darling are now foaming at the mouth. I bet they'll now sack him!

Yep, they've been dropping hints about this already. Expect to see a new governor within 3 months. :money:

EdInvestor

Steady on, chaps.Seems to me the picture's actually a lot less clear -and less alarming - now than it was a month ago.

-Libor has now come back to normal following the big capital injection
-The credit crunch doesn't seem to be having too much of an effect on UK banks so far.
-Mortgage approvals reductions according to pre crunch expectations, not worse
-Property prices were strongly up in December
-Christmas trading had some black spots (Dixons, M&S) but they were balanced by some bright spots (John Lewis,Sainsburys)
-Energy/utility prices are showing quite strong rises
-Although the credit crunch is still unwinding and posing dangers in the US, the global picture is more benign, with emerging markets remaining strong.There is not yet consensus that the US will go into recession.

There would seem to be no need for drastic measures, but rather a good argument for a "wait and see" approach, especially as the full inflation research report won't be available until next month.

I'd take it as a sign of confidence that things are not as bad as feared.