BOE Interest Rate is UP

[Paddy]

The pound just dropped....

oh dear

Strong and stable Stirling

[chopper]

You'd have thought Sterling would be up, but actually no, the markets are very unimpressed.

At 0.25%, you can't use central bank policy as a stimulus, you've already done everything. An increase to 0.5% isn't going to reduce consumer borrowing as rates are already rediculously low. I don't think we'll see retail savings rates increase either.

It's like the Bank hasn't yet realised that the historical use of interest rates at an economic tool is no longer possible. All they've done is try and talk up the strength of the economy. Which makes a change to their usual talking down the economy.

[BrilloPad]

The pound just dropped....

oh dear

Usually an interest rate rise makes the currency appreciate.

The market thinks that the economy is going to tank?

[BrilloPad]

You'd have thought Sterling would be up, but actually no, the markets are very unimpressed.

At 0.25%, you can't use central bank policy as a stimulus, you've already done everything. An increase to 0.5% isn't going to reduce consumer borrowing as rates are already rediculously low. I don't think we'll see retail savings rates increase either.

It's like the Bank hasn't yet realised that the historical use of interest rates at an economic tool is no longer possible. All they've done is try and talk up the strength of the economy. Which makes a change to their usual talking down the economy.

The only way to stimulate the economy now is to stop so much money being concentrated in the hands of so few.

BoE can't do much about that.

[BrilloPad]

Strong and stable Stirling

Unless the Forth floods.....

[WTFH]

Time to implement Wing Attack Plan R personal fiscal strategy B.

[eek]

Usually an interest rate rise makes the currency appreciate.

The market thinks that the economy is going to tank?

Forward guidance most imply that this is it for rate increases and its clear that the market thinks we need more of them....

[BrilloPad]

Time to implement Wing Attack Plan R personal fiscal strategy B.

Missiles that target cyclists?

[WTFH]

Missiles that target cyclists?

No, I'm going to HIKE the price of my gel, while improving delivery, both to the esteemed customers and into their systems.

Or to be more precise, the gel will be used to coat lead shot.

[BrilloPad]

No, I'm going to HIKE the price of my gel, while improving delivery, both to the esteemed customers and into their systems.

Or to be more precise, the gel will be used to coat lead shot.

Hair gel? Giant Elien Lizard?