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Interest Rate Hike

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GeoffF100
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Interest Rate Hike

#451117

Postby GeoffF100 » October 18th, 2021, 9:37 pm

"The futures market is now applying a probability of more than 90% to Bank rate rising to 0.25% at the MPC's next meeting on 4 November.

Bank rate is now expected to be 0.5% by the end of February next year and more than 1% by the end of 2022."


https://news.sky.com/story/interest-rat ... n-12437550

AsleepInYorkshire
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Re: Interest Rate Hike

#451121

Postby AsleepInYorkshire » October 18th, 2021, 9:58 pm

Well there goes the Christmas turkey.

Purely a sportsman's bet but I'm betting against an interest rate rise.

AiY

quelquod
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Re: Interest Rate Hike

#460979

Postby quelquod » November 25th, 2021, 10:51 pm

Got your turkey yet?

ursaminortaur
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Re: Interest Rate Hike

#461104

Postby ursaminortaur » November 26th, 2021, 11:25 am

quelquod wrote:Got your turkey yet?


As he said it is for Christmas not Thanksgiving (which isn't usually celebrated in Yorkshire) so its still a bit early yet.

Nimrod103
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Re: Interest Rate Hike

#461276

Postby Nimrod103 » November 26th, 2021, 7:56 pm

Surely the new Covid variant means that a BoE interest rate rise is out of the question until the middle of next year?
Bailey wipes his brow with relief.

BT63
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Re: Interest Rate Hike

#461307

Postby BT63 » November 26th, 2021, 9:53 pm

What use are one or two interest rate increases anyway? A token gesture to try to pretend that the BOE are doing something.
Rates will still be below inflation even if inflation comes down to 2% target.

With 5-10yr gilts yielding only 0.6-0.8% it wouldn't take many rate rises to upset the bond markets, with consequences for government borrowing costs.

murraypaul
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Re: Interest Rate Hike

#466328

Postby murraypaul » December 16th, 2021, 12:15 pm

https://www.bbc.co.uk/news/business-59682521

Bank of England raises interest rates to 0.25%

The Bank of England has raised interest rates for the first time in more than three years, in response to calls to tackle surging inflation.

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Re: Interest Rate Hike

#466329

Postby pje16 » December 16th, 2021, 12:17 pm

0.15 %
That wil make a HUGE differnce no doubt :lol:

AsleepInYorkshire
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Re: Interest Rate Hike

#466417

Postby AsleepInYorkshire » December 16th, 2021, 4:07 pm

pje16 wrote:0.15 %
That will make a HUGE difference no doubt :lol:

I'm not an economist but I seriously doubt interest rate rises will have any consequence on rising costs.

AiY

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Re: Interest Rate Hike

#466420

Postby pje16 » December 16th, 2021, 4:15 pm

Thanks AiY
(can't see a thanks button on this post)

tjh290633
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Re: Interest Rate Hike

#466466

Postby tjh290633 » December 16th, 2021, 6:17 pm

Decimal point in the wrong place. It should have been 2.5% to get back to a sensible level. Maybe 5% after that. The GBP would react more to something like that. It should never have been so low.

TJH

BT63
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Re: Interest Rate Hike

#466529

Postby BT63 » December 16th, 2021, 9:00 pm

tjh290633 wrote:Decimal point in the wrong place. It should have been 2.5% to get back to a sensible level. Maybe 5% after that. The GBP would react more to something like that. It should never have been so low.

TJH


Yes, the BOE and other central banks allowed 'emergency' measures from 2008/9 to continue and now the economy and financial system is worryingly addicted to them.
Interest rates cannot be raised by any meaningful amount and central bank asset purchases cannot be stopped without causing a meltdown in bond markets and/or a meltdown in stock markets.

Central banks no longer have any good choices left; whatever they do will end badly and we are probably within a few months of the tipping point for the beginnings of runaway inflation and/or stock market bear and/or bond market bear and/or recession.

I think if we all look back in 3 - 5 years time, most of us, whatever assets we hold, will be saying how much worry and loss of sleep we suffered in the probable rollercoaster that's coming.


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