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Grim news

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    Grim news

    Grim outlook from Bank of England: rates static till 2013

    In a relentlessly bleak outlook for Britain’s prospects, the Bank downgraded its growth forecasts for the next three years, cut its longer-term inflation projections, and warned that the risks remain “on the downside”.

    It will not be until 2014 that the economy is expanding faster than its trend rate, five years after the end of the recession. After the slumps in both the 1980s and 1990s, growth bounced back above trend within two years.

    Inflation will peak at 5pc in the next few months before falling back at the end of the year and dropping below the 2pc target in 2013 if rates rise in line with market forecasts, the Bank’s Inflation Report showed.

    Its assumptions had markets pricing a first rate increase in the final three months of 2012, but the report suggested the Bank could follow the US Federal Reserve and leave rates on hold for longer.

    “Echoing the message from the US Fed, the projections implied that the Monetary Policy Committee does not envisage raising the policy rate for a long time, probably not until 2013,” Simon Hayes, UK economist at Barclays Capital, said.

    Source: Grim outlook from Bank of England: rates static till 2013 - Telegraph

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    So, just to sum it up - rate will be at near 0 for around 4-5 years, where as real inflation will be around 10%+.

    Sir Merv must know what he is doing

    #2
    Time to buy some BTLs then.
    What happens in General, stays in General.
    You know what they say about assumptions!

    Comment


      #3
      Aye.

      I am getting myself a BLT tomorrow and a bottle of Diet Coke.

      That's will show 'em!

      Comment


        #4
        Originally posted by AtW View Post
        Aye.

        I am getting myself a BLT tomorrow and a bottle of Diet Coke.

        That's will show 'em!
        Diet coke? Good idea fatty.
        What happens in General, stays in General.
        You know what they say about assumptions!

        Comment


          #5
          Originally posted by MarillionFan View Post
          Diet coke? Good idea fatty.
          I'd get normal coke but I don't want to cross the line

          Comment


            #6
            Originally posted by AtW View Post
            I'd get normal coke but I don't want to cross the line
            Coke zero? Supposedly all the taste with a reminder of what current interests rates are.
            merely at clientco for the entertainment

            Comment


              #7
              Originally posted by eek View Post
              Coke zero? Supposedly all the taste with a reminder of what current interests rates are.
              I am not interested in Coke zero.

              HTH

              Comment


                #8
                Interesting...now if the stupid bank has allowed for deflation..we might have been okay now.
                Beats me how a rate rise will reduce inflation...most of the cause of the inflation is from abroad. Fuel, food, energy - all essentials all rising at high rates. Partly due to cheap money "printed" by - uh the banks.

                On the "good" side this does mean that the rip-off rate the bank is charging me for the mortgage won't go up for some time.
                McCoy: "Medical men are trained in logic."
                Spock: "Trained? Judging from you, I would have guessed it was trial and error."

                Comment


                  #9
                  Originally posted by lilelvis2000 View Post
                  On the "good" side this does mean that the rip-off rate the bank is charging me for the mortgage won't go up for some time.
                  Same here!! Happy Days!!

                  Just wish I had some sucker like AtW paying it all for me!!

                  “The period of the disintegration of the European Union has begun. And the first vessel to have departed is Britain”

                  Comment


                    #10
                    What do you care? You don't believe in borrowing money so why should you benefit from those who do?
                    Science isn't about why, it's about why not. You ask: why is so much of our science dangerous? I say: why not marry safe science if you love it so much. In fact, why not invent a special safety door that won't hit you in the butt on the way out, because you are fired. - Cave Johnson

                    Comment

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