Interest Rates - BoE should cut them or the governer should go!

aardvaak

From reading the replies of superv it seems obvious they have got over extended in an unaffordable loan - the call to cut the rate all the time will hit poor investors like me try to earn a living.

SuperV

bigturnip wrote: »

You've just made the last 4 posts, there is an edit button for a reason.

Again wrong - I use edit button a lot, you can check that as well.

Are you afraid to see facts everywhere around you? Every post is a new information. Please complain to FT, Times, Guardian etc...

SuperV

aardvaak wrote: »

From reading the replies of superv it seems obvious they have got over extended in an unaffordable loan - the call to cut the rate all the time will hit poor investors like me try to earn a living.

:beer:

Wrong - I am not such a selfish soul as it seems you are. I am trying to save even your neck.

An example - calculate average house prices in the UK in 2001 in euros and now. What is the result? Sound investment?

Buy petrol. Oil is down, but not in the UK as the sterling lost 7% against dollar in few weeks keeping inflation high. Even with 5% BoE base interest rate...

So, kill economy and you will have no investment at all. Unless you have some cash in euros and you are hoping to profit while everybody else suffers - buy cheap on fire-sales..

mr_magoo_5

Put rates up!

Heyman_2

SuperV, I actually enjoy reading this thread .

It's nice to read someone with a different point of view challenging the general bleating sheep consensus that the end of the world is nigh unless the BoE raise interest rates.

I think it highlights the real difficulty the BoE have at the moment and why rates will probably be kept on hold for a while yet. I don't think they actually have the balls to fall one way or the other at the moment, as any change will immediately signal their intention/policy towards the current climate and will likely cause more problems. For example, a shift up will basically kill the economy stone dead and push the housing market into absolute freefall - the bank would likely be blamed for giving the country the last shove into proper recession. A shift down will indicate that the bank aren't bothered about inflation which is at odds with their remit.

Like I say, I think it's a mightily tough decision and I don't think they'll have the bottle to shift the rate either way this side of Christmas.

SuperV

mr_magoo wrote: »

Put rates up!

Explain why.

SuperV

Heyman wrote: »

SuperV, I actually enjoy reading this thread .

Thank you.

Heyman wrote: »

It's nice to read someone with a different point of view challenging the general bleating sheep consensus that the end of the world is nigh unless the BoE raise interest rates.

Media brain wash is very intensive, unfortunately. Use it with appropriate conditioner - greed, and you can have fantastic results.

Heyman wrote: »

I think it highlights the real difficulty the BoE have at the moment and why rates will probably be kept on hold for a while yet. I don't think they actually have the balls to fall one way or the other at the moment, as any change will immediately signal their intention/policy towards the current climate and will likely cause more problems. For example, a shift up will basically kill the economy stone dead and push the housing market into absolute freefall - the bank would likely be blamed for giving the country the last shove into proper recession.

Depression.

Heyman wrote: »

A shift down will indicate that the bank aren't bothered about inflation which is at odds with their remit.

... and support the Government economic policy... I think Treasure will take that decision for them. Finally!

Heyman wrote: »

Like I say, I think it's a mightily tough decision and I don't think they'll have the bottle to shift the rate either way this side of Christmas.

You are right - they don't have them. I think they are scared (whatever the reasons are...) like a deer on a motorway and they hope that the incoming truck will miss them if they don't move.

It won't miss!!

SuperV

Really, is there anyone still thinking that BoE keeping basic rate at 5% will help sterling?

1£ = 1.75US$ - drop of 12% in one month.

Interest rate in USA is 3%?

tonyhamm

Only higher interest rates will cure this inflation.
Its easily shown that if people try to spend money because they believe prices will rise - called dis-saving - then the number of transactions of that money increases and inflation rises because the price level rises. And even I have been dissaving.
All this talk about low inflation because of no unions is a fallicy. The rise in union membership and power occured only because prices were rising and people had to protect thier real incomes. Its the amount of unproductive government spending and waste which creates these problems in the economy.
And the power of dissaving? If there is a desire to spend your money twice as much as before because of rising prices - it doubles inflation. Add a government printing money to cover an enormious deficit between taxes and spending on wasteful non-jobs and useless schemes, with a refusal to cut back, and inflation rises further

Dan_1976

We need to rough it through this storm. We dont need stamp duty frozen, we dont need help with mortgages we need to be tought a lesson and face what we have got our selves into! Along the way we should boot out Mr Brown and his puppets and start standing up on our own feet. No more following celebs and trying to live like we earn 20k more than we do, no more letting estate agents push prices up and up and no more greed!