BofE base rate decision at noon

[BrilloPad]

http://news.bbc.co.uk/1/hi/business/7280515.stm

Bank set to keep rates at 5.25%

The Bank of England faces slowing growth while prices rise
The Bank of England's rate-setting committee is forecast to keep interest rates at 5.25% later on Thursday, amid growing signs of inflation.
Most analysts are expecting rates to stay on hold after the central bank reduced rates in February by a quarter of a percentage point from 5.5%.

The bank faces the twin threat of a cooling economy while prices rise.


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Now doubt Blaster will be along with some doom to spread around...

[MrRobin]

Down a bit, please.

[DimPrawn]

It makes sod all difference if they go up or down a bit.

[milanbenes]

it gives a lot of confidence that they are reacting so agressively in the face of the evolving economic situation

Milan.

[rootsnall]

it gives a lot of confidence that they are reacting so agressively in the face of the evolving economic situation

Milan.

They'll slash interest rates hard when they start to panic and not worry about inflation. For now it's fingers crossed that somehow everything will turn out OK.

[Bagpuss]

It makes sod all difference if they go up or down a bit.

Agreed, the banks are not reacting to the downward rate moves with regards to the cost of borrowing, some are adjusting savings rates though, both factors only serving to make matters worse.

[Lucifer Box]

Agreed, the banks are not reacting to the downward rate moves with regards to the cost of borrowing, some are adjusting savings rates though, both factors only serving to make matters worse.

Well quite. The banks are holding or increasing their lending rates and cutting their saving rates. Any action by the BofE short of a dramatic cut in rates is unlikely to have much immediate affect anyway.

[sasguru]

Fiddling while Rome burns comes to mind ...

[Bumfluff]

I heard they are going to try a US style fix and cut 2% of today bringing BOE down to 3.25% you heard it here first.























Yeah Im tuliping

[NoddY]

I heard they are going to try a US style fix and cut 2% of today bringing BOE down to 3.25% you heard it here first.

It's entirely possible. Debasing the value of currency is one of the 'solutions' to the UK's debt problem. However, inflation begets inflation and any cut may lead to a spiral.