U.K. Executive Confidence Rises as BOE Rate Threshold Looms

[suityou01]

Don't they have to unwind QE before a rate rise?

Or is QE just an excuse to print money where only the government and banks can spend it?

I thought that. I guess they don't, but one would cancel out the other.

[AtW]

Don't they have to unwind QE before a rate rise?

Increasing rates IS the unwinding of QE!!

[suityou01]

Increasing rates IS the unwinding of QE!!

SAS, slap him please.

[BrilloPad]

Increasing rates IS the unwinding of QE!!

Okay. Let me be more specific. Raising base rates.

[CheeseSlice]

In the US they're tapering which I believe is to gradually reduce the rate at which the fed buys gov't debt until it is nil. I don't know if they or the UK are also going to suck all of that loose money back out of the economy again, which I think would be unwinding (i.e. destroying money that shouldn't exist).

[Peoplesoft bloke]

Last chance to fix your mortgage rate. Selling like 'ot cakes Guv'nor!

Saved a fortune by not fixing mine - not going to fix now at higher than I am paying.

[suityou01]

Call me fick, but I thought that QE effectively gave negative interest rates without actually having negative interest rates. Tapering QE would be like rolling the IR back to 0.5, then a hike from there would start sucking the loose money back out.

Just because you're printing less doesn't mean money is getting sucked out.