There seems to be a high probability that the UK will raise interest rates at tomorrows BoE meeting. What might the different outcomes mean for GBP?
In particular, what does it mean if rates are held? Would we expect GBP to reach bullishly to this?
and have we already priced in the prospect of a .25% cut?
Thanks
Raise interest rates? Not a chance in hell.
It will be a non-event.
Just another bland moment in the trading calendar.
Raise?!
Wherever you got this impression from, Rom, I advise you to [U]stop[/U] looking there, just in case all their information shares the same reliability.
There’s [B]no[/B] possibility of that. The question (if there is one, at all) is whether they’ll [I]reduce[/I] them.
…
Presumably you mean quiet, not quite.
The likelihood is that rates will either remain at 0.5%, as has been the case for several years, with the slight possibility of a cut in order to stimulate the UK economy by making borrowing cheaper and prevent a collapse in the housing market.
Hmmm… seems some confusion, or is it just me?
Trick, what actually did happen, or did I miss it?.
My partner and I got a letter from our bank today announcing that post-BoE rate cut our savings account will no longer yield 0.5% annually but …wait for it…
0.05%.
Well done, Carney, bra-vo slow hand clap
This is your f*cking plan for savers…
Really?
Give me a break.
Pipme, tell me about it - not Carney’s fault, have you not seen the talk about the possibility of actually charging you to maintain your savings.
They are all hopping on the bandwagon - there is even a new ‘tax’ if you wish to hire a car in Europe and you have a GB address - the hirers are calling it the Brexit tax (among themselves that is, the official name is a currency exchange tariff, see today’s Sun newspaper).
Even the last bastion of co-ownership in the banking industry , the Nationwide Building Society, the same organisation that valiantly fought not to become a share holder’s bank, have succumbed, again not their fault.
I was going to say that we need to lay the blame on the politicians, but so difficult to know, is it the case that they are reacting to public opinion are some of them orchestrating that opinion so that it falls into line with their own.
Bottom line is that ordinary people pick up the tab.
(btw part of the argument on the lower rates is that instead of saving we will spend, works well in the absence of fear/doubt/uncertainty, will it work now? - depends on whether news up ahead either increases or decreases those 3 sentiments, this is where we need the politicians)
Interesting post, Peterma.
I really see no point in blaming Carney, so I agree with you…i have a lot of respect for his way to make Threadneedle Street’s dealings much mote transparent…
Incidentally, I was at the Edinburgh book festival a couple of weekends ago and saw former BoE chief Mervyn King’s book ‘the end of Alchemy’, which among other things discusses the limits of central bank influence…
Central bankers are trapped in this collective madness,although they know it is not working…
Negative rates are being implemented around the world (e.g. Switzerland)… This is a crisis point for fractional reserve banking… Blame it all on Nixon, I say haha
it aswell is the ordinary peoples fault.
from macroeconomic perspectives.
how do you expect a growth in your country when for several generations you habe average 1 kid per family.
and aging population every year older and older average age of population.
people are so fed up with blaming each other for problems that the main reasons (good or bad doesnt matter) are not even been seen.
brexit is just another symptome of a illness the western colture (eu, russia+ex sovjet states, usa, the comon wealth) is suffering from since generations.
i wish i had the time to elaborate what im talking about but if you need examples take rome, the spanish kingdom, the empire (uk a hundret years ago) the french kingdom. etc etc
all the same ilness with the same symptomes we are seeing today aswell.
Yep, but switch to the positive.
M. King was cutting edge, back then, the cutting edge right now has the same colour hair as me, one of my grandchildren call it blonde 
Funny thing is that she has the same outlook, see her most recent speech, realistic but far from negative.
I have zero doubt that she will get her way, rates will go up in the US, likewise Europe will follow suit.
He was interviewed about it for 20 minutes on [I]BOOKtalk[/I] recently - it might still be available on the iPlayer, if you want to see.
I say Reagan/Thatcher, I think. John Adams perhaps agrees with you, though … 