Reply to: Bank of England Base rate & other news

[Martin@AS Financial]

The end of LIBOR

Full report here from the Bank Of England:

https://www.bankofengland.co.uk/news...ST_EMAIL_ID%5D

[vetran]

Dats a bit racist isn't it?

You are Gary Linaker and I claim my 5 crisps

[Martin@AS Financial]

Bank Rate maintained at 5% - September 2024


No significant surprises here as it would have been a fairly bold decision to have swiped a further 0.25% from the base rate.

Full report here:

https://www.bankofengland.co.uk/mone...september-2024

[WTFH]

Dats a bit racist isn't it?

What race are you claiming to be part of today? (perhaps ask your accountant on that one)

[PCTNN]

Can someone tell me in plain English, will my house price go up?

yes

[northernladuk]

No, but if you move out, the neighbours' houses will go up in price.

Dats a bit racist isn't it?

[WTFH]

Can someone tell me in plain English, will my house price go up?

No, but if you move out, the neighbours' houses will go up in price.

[northernladuk]

Can someone tell me in plain English, will my house price go up?

[Martin@AS Financial]

Full report and minutes here from the BOE:


https://www.bankofengland.co.uk/-/me...ugust-2024.pdf

The most telling paragraph is:

"Monetary policy will need to continue to remain restrictive for sufficiently long until the risks to inflation returning sustainably to the 2% target in the medium term have dissipated further. The Committee continues to monitor closely the risks of inflation persistence and will decide the appropriate degree of monetary policy restrictiveness at each meeting."

[jamesbrown]

Huh?

5% from 5.25%

https://www.theguardian.com/business...08a0af63bb3a6c

5 to 4 vote
https://www.bbc.co.uk/news/live/cx92...965fb7a34#post

Bang in line with market expectations...

[SueEllen]

Huh?

5% from 5.25%

https://www.theguardian.com/business...08a0af63bb3a6c

5 to 4 vote
https://www.bbc.co.uk/news/live/cx92...965fb7a34#post

[willendure]

I can imagine the overpaid under educated BoE thinking, we can’t be seen making a mistake so we will wait a see what the Fed will do.

Doesn't really work like that.

Its more a case of, if we cut under the fed, then capital will flow out of the UK into the USA. So I bet we will not cut and instead wait until the Fed does. The fed is the 800 pound gorilla in this game.

[Paddy]

Not directly BOE related but interesting to see how the US has dealt with inflation.

"Fed likely to hold rates steady one last time as inflation fight finale unfolds"

https://www.reuters.com/markets/rate...ds-2024-07-29/

I can imagine the overpaid under educated BoE thinking, we can’t be seen making a mistake so we will wait a see what the Fed will do.

[Martin@AS Financial]

Not directly BOE related but interesting to see how the US has dealt with inflation.

"Fed likely to hold rates steady one last time as inflation fight finale unfolds"

https://www.reuters.com/markets/rate...ds-2024-07-29/

[Martin@AS Financial]

BOE Financial Stability Report for Q2 makes for some interesting reading as it talks about uncertainty on the world stage, UK banking reliance and UK household debt.

Full report here:

https://www.bankofengland.co.uk/-/me...-june-2024.pdf