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  • FIRST POST
    • veryintrigued
    • By veryintrigued 8th Feb 18, 1:22 PM
    • 2,361Posts
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    veryintrigued
    BoE hints at earlier and larger rate rises - BBC
    • #1
    • 8th Feb 18, 1:22 PM
    BoE hints at earlier and larger rate rises - BBC 8th Feb 18 at 1:22 PM
    http://www.bbc.co.uk/news/business-42986729
Page 1
    • Glen Clark
    • By Glen Clark 8th Feb 18, 2:16 PM
    • 4,134 Posts
    • 3,155 Thanks
    Glen Clark
    • #2
    • 8th Feb 18, 2:16 PM
    • #2
    • 8th Feb 18, 2:16 PM
    Is this the interest rate rise they have been predicting ever since they introduced the 'Emergency' 0.5% interest rate 9 years ago?
    “It is difficult to get a man to understand something, when his salary depends on his not understanding it.” --Upton Sinclair
    • talexuser
    • By talexuser 8th Feb 18, 2:19 PM
    • 2,396 Posts
    • 1,896 Thanks
    talexuser
    • #3
    • 8th Feb 18, 2:19 PM
    • #3
    • 8th Feb 18, 2:19 PM
    Maybe it's different this time round, but after so many regular announcements of possible interest rate increases the past now nearly 10 years, you do get rather blase about how serious they really are. Particularly if things go badly in the Brexit negotiations.
    • Filo25
    • By Filo25 8th Feb 18, 2:25 PM
    • 1,466 Posts
    • 2,124 Thanks
    Filo25
    • #4
    • 8th Feb 18, 2:25 PM
    • #4
    • 8th Feb 18, 2:25 PM
    This time I think it probably is for real, global growth is stronger, inflationary pressures perceived to be rising and at least on headline unemployment rates a very tight labour market.

    Bond yields generally been on the rise as well.

    In the absence of any major shocks I would expect rates to go to 0.75% in May and they will see how the economy responds, it looks like most central banks are likely to move towards tightening policy.

    Unsurprising really, it is hard to justify keeping emergency rates in place in the face of a strengthening global economy.

    Of course if asset prices throw a fit in the face of expected tightening they may think again!
    Last edited by Filo25; 08-02-2018 at 2:32 PM.
    • xylophone
    • By xylophone 8th Feb 18, 3:03 PM
    • 25,371 Posts
    • 14,967 Thanks
    xylophone
    • #5
    • 8th Feb 18, 3:03 PM
    • #5
    • 8th Feb 18, 3:03 PM
    but after so many regular announcements of possible interest rate increases
    "Talk's cheap, money buys houses".....as my old grannie used to say.
    • talexuser
    • By talexuser 8th Feb 18, 4:29 PM
    • 2,396 Posts
    • 1,896 Thanks
    talexuser
    • #6
    • 8th Feb 18, 4:29 PM
    • #6
    • 8th Feb 18, 4:29 PM
    If, after all, we get 0.75%, it could be that for a while, and collective memory starts to forget, still nowhere near normal historical rates. So the next upset in the economy we can reduce to 0.25% emergency again? How long can this go on, and through how many economic cycles?
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