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Rate cutting cycle about to start

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vand
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Rate cutting cycle about to start

#667619

Postby vand » June 5th, 2024, 12:40 pm

Watch what they do, not what they say...

The expectation of interest rate cuts has been pushed back throughout the year, but it looks now like the ECB will be the first major central bank start its rate cutting cycle this week:

https://www.theguardian.com/business/ar ... -this-week

IMO, the fight against inflation is in the rear view mirror - tomorrow's story will be containing the fallout from the economic damage done from the overly tight monetary policy of the last few years.

clissold345
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Re: Rate cutting cycle about to start

#667687

Postby clissold345 » June 5th, 2024, 7:56 pm

I read a comment on lse.co.uk that Sunak knows the Bank of England will cut interest rates this month, hence he chose a July election.

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Re: Rate cutting cycle about to start

#667691

Postby GoSeigen » June 5th, 2024, 8:46 pm

clissold345 wrote:I read a comment on lse.co.uk that Sunak knows the Bank of England will cut interest rates this month, hence he chose a July election.


Oh my God, you frequent that place! AND take notice of what people say?

I visit occasionally to see what they're enthusiastically talking about so I know what to not to touch even with a bargepole. Dodged several bullets that way...

GS
P.S. Appears vand thinks we're on the verge of recession again...

vand
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Re: Rate cutting cycle about to start

#667745

Postby vand » June 6th, 2024, 10:33 am

clissold345 wrote:I read a comment on lse.co.uk that Sunak knows the Bank of England will cut interest rates this month, hence he chose a July election.


Could be, although I think the May CPI print is what he is really pinning his hopes on, which shouldshow further decline from last month's 2.3%, perhaps even down to target 2.0%.

Don't think it'll do the Tories any good at all, mind - they're doomed.

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Re: Rate cutting cycle about to start

#667750

Postby Mike4 » June 6th, 2024, 10:55 am

clissold345 wrote:I read a comment on lse.co.uk that Sunak knows the Bank of England will cut interest rates this month, hence he chose a July election.


And paradoxically, word on the R4 thing this morning was the the BoE will probably feel driven to delay the cut to August in order not to appear to have done it under instruction from No 10 to support the tory election campaign!

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Re: Rate cutting cycle about to start

#667867

Postby Johnson » June 7th, 2024, 12:11 pm

about bank cuts interest rate .I am not sure how this will affect future investments and my daily life.

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Re: Rate cutting cycle about to start

#667888

Postby clissold345 » June 7th, 2024, 1:07 pm

Johnson wrote:about bank cuts interest rate .I am not sure how this will affect future investments and my daily life.


Here's a comment from the Financial Times on the prospect of an ECB rate cut (which happened yesterday):

"... By starting to lower rates again, the bank [the ECB] is set to breathe fresh life into housing markets, business investment and consumer spending. The ECB last year raised its benchmark deposit rate to a record 4 per cent, putting a chokehold on economic activity to tackle the biggest price surge for a generation. ..."


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