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satch

Bank of England hold rates but now 6 to 3 not 7 to 2

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BoE hold rates in shock decision, the DM article.

http://www.dailymail.co.uk/money/news/article-5869941/Interest-rates-rise-August-extra-vote-hike.html

The Bank’s ratesetters voted 6 to 3 to hold rates rather than the expected 7 to 2 result, as the Bank’s chief economist Andy Haldane joined those calling for an immediate rise.

Interest rates had been widely expected to rise in May throughout most of spring, however ……

'But on balance I still think we might not see a rate rise for the rest of the year - policymakers will at the very least want confirmation that the weak first-quarter growth figure was just a blip before raising borrowing costs.’

But more bad news for savers in favour of borrowers.

http://www.dailymail.co.uk/money/saving/article-5862637/Two-UK-building-societies-cut-rates-order-costs-borrowers.html

'Two of Britain's biggest building societies are cutting rates for loyal savers in order to keep costs down for borrowers. Nationwide, the largest society, with assets of more than £200 billion, will pare the rates of its Instant Isa Saver, Instant Access Saver and Smart Saver for children from June 28. And Coventry, which ranks at No 2 in the UK, with assets of £42.5 billion, is lowering rates on 20 accounts at the start of next month.'

So it seems to be as you were unless they are forced to raise rates, perhaps they will wait until Carney goes and his legacy will be a decade of 0.5% base rates while continually saying rates could or might rise sooner or later.

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Their pension is in sterling linkers.

Hey ho.Keeping rates low for the plebs savings and then having the majority in linkers for themselves.

When their pension is threatened they will move,probably a lot more quickly than anyone can foresee.

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1 hour ago, satch said:

Two of Britain's biggest building societies are cutting rates for loyal savers in order to keep costs down for borrowers

Now this should send out a red alarm but as rates are so fucking low anyway and the raturn on a large pile is so small it the 'savings' for the borrowers must be miniscule.

There is nowhere to go, they are over a barrel and the assets are what they lent the money on.

So the question is when does the negative feedback loop start, trouble is negative feedback is like stuffing a microphone into a speaker, it blows your ears out before you can pull it away or switch it off.

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Fear not Hammond the Keynesian fucken wanker who i do hope drops dead has given the BoE the potential of another £750BN to give to his banker chums.

https://www.telegraph.co.uk/business/2018/06/21/chancellor-unveils-new-powers-bank-england/

Behind a paywall so cant read most of it, but i hate Hammond with a passion and no doubt it is aimed at propping up his property empire in some way.

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23 minutes ago, Banned by HPC said:

Fear not Hammond the Keynesian fucken wanker who i do hope drops dead has given the BoE the potential of another £750BN to give to his banker chums.

https://www.telegraph.co.uk/business/2018/06/21/chancellor-unveils-new-powers-bank-england/

Behind a paywall so cant read most of it, but i hate Hammond with a passion and no doubt it is aimed at propping up his property empire in some way.

The bulk of this article seems to point to a £750 billion term funding scheme given out by Carney and his mates to the banks.

Savers will get nothing as banks receive money from the BOE so savers become irrelevant, Cost of borrowing will fall to its lowest ever, housing Ponzi scheme will be pumped full of money, debt will be increased, and see how long it holds before it collapses.. We are so fucked!

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This guy has surely made a mockery of any trust with his flirty forward guidance and rises held to a carrot on a long stick.  Maybe if he had said less it wouldn't be so infuriating, instead always his smirk and hot air.

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Posted (edited)
7 hours ago, Banned by HPC said:

Fear not Hammond the Keynesian fucken wanker who i do hope drops dead has given the BoE the potential of another £750BN to give to his banker chums.

https://www.telegraph.co.uk/business/2018/06/21/chancellor-unveils-new-powers-bank-england/

Behind a paywall so cant read most of it, but i hate Hammond with a passion and no doubt it is aimed at propping up his property empire in some way.

They won't stop... This is CRAZY. I was beginning to get optimistic... initial TFS ended, Fed raises rates again and rolls off QE, ECB state they will stop QE in 6 months. 

BOE keeps rates at emergency levels and provide further funds for debtheads

Edited by UnconventionalWisdom

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8 hours ago, macca said:

The bulk of this article seems to point to a £750 billion term funding scheme given out by Carney and his mates to the banks.

Savers will get nothing as banks receive money from the BOE so savers become irrelevant, Cost of borrowing will fall to its lowest ever, housing Ponzi scheme will be pumped full of money, debt will be increased, and see how long it holds before it collapses.. We are so fucked!

This is properly insane.

Just as it was all getting a bit better, prices are starting to fall then BANG...fuck you all, we are taking it all, we're throwing you under the bus, right under, then reverse back and running you down again.

This is linked to house prices falling, pure and simple, the greedy bastards refuse to let prices correct.

1 hour ago, UnconventionalWisdom said:

They won't stop... This is CRAZY. I was beginning to get optimistic... initial TFS ended, Fed raises rates again and rolls off QE, ECB state they will stop QE in 6 months. 

BOE keeps rates at emergency levels and provide further funds for debtheads

I always thought they wouldnt stop, then the US stopped, They stopped, FLS was stopped, the US raised rates, they BoE raised rates, the ECB stops....then UK House prices start collapsing....what do they do.

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The 6/3 vote is a con, it's their latest gimmick to pretend they might raise IRs.

 

but chief economist Andy Haldane voted to put rates up to 0.75pc, sending markets into a frenzy of speculation that rates will rise in August."

 

The markets must be as thick as pig shit.

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Sterling=toilet paper...so much for free market economics eh?....the Treasury/BoE takes the profits (& the banks), the tax payers take any losses....and are then asked to fund NHS with additional taxes as  current ones are used for "foreign aid" (read as foreign trade)....the populus are being shafted and are too thick to do anything about it....I truly despair with this country and if I could decide where else to go I would be off...but would it be any different elsewhere?!

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10 minutes ago, stokiescum said:

ive got a morgage and even i want rates to go up,5% has a nice ring to it.

Then you shall go to the ball, just not yet!

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im told im a vindictive bastard for wanting them to go up,i work with many with large morgages< for around here> who have never seen a rise,ever.they think these rates are normal.

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4 hours ago, TheCountOfNowhere said:

This is properly insane.

Just as it was all getting a bit better, prices are starting to fall then BANG...fuck you all, we are taking it all, we're throwing you under the bus, right under, then reverse back and running you down again.

I wonder.. maybe this cash is not for houses this time.. but preparing for the global economic collapse that is just around the corner.. durahan born said they will print money into the economy when the crash comes.. this might just be preparation for what is too come.. 

it is £750 billion, banks have reduced savings rates for some up coming free money.. 

but it does not mean it’s to keep the plates spinning forever, maybe it’s getting ready to inject the economy when it all collapses.. 

or maybe they are just evil bastards out to destroy the working people.. they have already done that.. 

83A6EE27-FB41-4086-9988-FBC3D8B0D066.jpeg

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It seems that North America's interest rates and mortgage rates are going up but the UK's are not.

I assume it's down to the uncertainty around Brexit. :/

 

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The LIBOR & LIBID curves are near-identical to last month; no rate rise is currently priced in and it absolutely was for the 0.25 to 0.5 rise prior to it happening.

The (higher) LIBOR curve hits 0.75 in six months from 0.5 now which suggests a rate rise happening in three months' time.  Though it's only when the short end (one week and one month) jumps that a rate rise is imminent.

They always tip off their mates in the banks who price these deposits.

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Posted (edited)
3 hours ago, stokiescum said:

"they think these rates are normal."

Sadly, I think they might well be right. We've had 10 years of 'emergency' rates at <0.5-0.25% and the economy has according to the government been strong and resilient!

If this is as good as it's ever going to be, then what position are they going to be in to raise them? Last chance August to maybe 0.75%, after that it's back down again to support the debt laden ponzi scheme. I remember the last housing crash of the late 80's when some of my friends posted the keys to their house back through the banks letter box and walked away. The banks at the time were well capitalized and had stricter lending criteria. Today that would be more like a Wile E. Coyote off the cliff moment, and the government aren't gonna subject their mates in the banks to that are they....

Inflation will be the result, inflating away the huge debts. It's gonna take some time....

Edited by NogintheNog
Spelling mistake

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Posted (edited)
13 minutes ago, NogintheNog said:

Sadly, I think they might well be right. We've had 10 years of 'emergency' rates at <0.5-0.25% and the economy has according to the government been strong and resilient!

 

People in the U.S. were thinking that 18 months ago.

Quote

Inflation will be the result, inflating away the huge debts. It's gonna take some time....

Inflation makes it harder to pay off your debts, not easier.

You mean wage inflation....in the globalised world....with job losses and mass immigration, not a f**king hope in hell.

I get paid less than I did 7 years ago, nominally.

I see it going down, not up.

That period of wage inflation that helped clear the boomers debts have not happened for the last 20 years.

 

 

 

Edited by TheCountOfNowhere

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6 minutes ago, TheCountOfNowhere said:

People in the U.S. were thinking that 18 months ago.

Agreed. However as the $ is the 'reserve' currency, I think the US can raise rates for the short term, however I don't think they'll raise much more before their economy buckles under the weight of the debt. I'm not gonna hold my breath for the BoE to follow them.

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