"But you don't have the Bundesbank's balance sheet and Germany's monetary and fiscal credibility behind you, or the world's reserve currency creating virtually unlimited demand for your currency."
"Oh."
The Treasury has leant on the BoE not to do rate rises. They should have done 2% today and said plenty more where those came from. Prob not much over what they would have done incrementally, but enough to say "enough's enough" with a meaningful tool you control, not just a printing press.
I don't think the markets believe the government will accept the BOE pushing interest rates to 5/6% (where someone on a £800 mortgage could now be paying £1400 odd) and it's pretty clear the treasury has lent on them to do anything but that
I don't think you can blame people either for taking mortgages that are unserviceable at 200% interest jumps, we've had 12/14 years of 0ish interest rates and government policy that people need to own their own homes, the market isn't there to sell homes at a safety margin incase debt costs rise either
this is years of terrible conservative policy coming home to roost, it's just hilarious that the thing to burst the boil was an egregious donor cash grab
"What we have seen since Friday is partly a market adjustment to the increased probability that Sir Keir Starmer will win in 2024 or 2025 - leading to higher taxes, higher spending, and a weaker economy."
Sumo, the BoE have been in charge of interest rates all this time. They could have put them when prices inflated in the midst of the Covid boom but they sat on them at 0.1% until 17 December 2021.
Inflation was already rampant by then and it was far too late to increase to a whopping .25%.
They carried out the same policy under Labour too, by the way. Even after Gordon Brown had saved the world and the next boom started, the BoE kept rates at a giddy 0.5%.
If there is anything government should do about the MPC it is to cancel their monetary policy powers. All of them. Bring it back in house.
I would imagine raising rates during covid would be a bit mental
I would venture that raising rates gradually now that we have "world beating" growth and horrific inflation that can't be ignored is more sensible
I would further suggest that the issue here is the government deciding the bank is stupid and going in the opposite direction, borrowing like mad and throwing money to people who won't stimulate the economy with it all while navigating uncharted territory of just having ripped up membership of the biggest free trade block in the world off the back of IMF (IMF of all people) suggestions that most global growth will come from developing nations
there's a lot to be pissy at the BOE about, but this is pure government incompetence
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I BLAME SIR BEER!
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I blame chaos with Milliband!
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So definitely not down to the K man then?
Absolutely nothing to do with him and his little fiscal event?
Despite what every international commentator is saying?
Are you sure?
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I think you’ll find Paul McCartney wrote a song about this
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Of course, they just announced huge QE
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Which one? Help?
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So Kwasi's meeting with the bankers went well then...
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Are you saying there was not a run on the pound last week Ami?
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ha.
Pound On The Run
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Laughable:
"We'll do whatever it takes."
"But you don't have the Bundesbank's balance sheet and Germany's monetary and fiscal credibility behind you, or the world's reserve currency creating virtually unlimited demand for your currency."
"Oh."
The Treasury has leant on the BoE not to do rate rises. They should have done 2% today and said plenty more where those came from. Prob not much over what they would have done incrementally, but enough to say "enough's enough" with a meaningful tool you control, not just a printing press.
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0
I don't think the markets believe the government will accept the BOE pushing interest rates to 5/6% (where someone on a £800 mortgage could now be paying £1400 odd) and it's pretty clear the treasury has lent on them to do anything but that
I don't think you can blame people either for taking mortgages that are unserviceable at 200% interest jumps, we've had 12/14 years of 0ish interest rates and government policy that people need to own their own homes, the market isn't there to sell homes at a safety margin incase debt costs rise either
this is years of terrible conservative policy coming home to roost, it's just hilarious that the thing to burst the boil was an egregious donor cash grab
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*Rubs eyes*
Daniel Hannan actually has...
"What we have seen since Friday is partly a market adjustment to the increased probability that Sir Keir Starmer will win in 2024 or 2025 - leading to higher taxes, higher spending, and a weaker economy."
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It was lower on Monday. HTH.
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I saw
Rishi Sunak will not attend Conservative Party conference. He’ll be in Yorkshire instead.
Ally says former chancellor will give Truss all the space she needs to own the moment
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Sumo, the BoE have been in charge of interest rates all this time. They could have put them when prices inflated in the midst of the Covid boom but they sat on them at 0.1% until 17 December 2021.
Inflation was already rampant by then and it was far too late to increase to a whopping .25%.
They carried out the same policy under Labour too, by the way. Even after Gordon Brown had saved the world and the next boom started, the BoE kept rates at a giddy 0.5%.
If there is anything government should do about the MPC it is to cancel their monetary policy powers. All of them. Bring it back in house.
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Now tell us the one about how donald trump actually won the election.
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The mpc has been an expensive and colossal failure
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I would imagine raising rates during covid would be a bit mental
I would venture that raising rates gradually now that we have "world beating" growth and horrific inflation that can't be ignored is more sensible
I would further suggest that the issue here is the government deciding the bank is stupid and going in the opposite direction, borrowing like mad and throwing money to people who won't stimulate the economy with it all while navigating uncharted territory of just having ripped up membership of the biggest free trade block in the world off the back of IMF (IMF of all people) suggestions that most global growth will come from developing nations
there's a lot to be pissy at the BOE about, but this is pure government incompetence
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Nationalise the BoE and do it as soon as possible
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lolz.28 Sep 22 15:51
Nationalise the BoE and do it as soon as possible
________________________________________________
....what?
who do you think owns it now?
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