Interest rates go up to 11.25%!

[ThomasSoerensen]

3.6% doesn't sound ok-ish. Who is buying them, is it foreign investors or is it the UK government?

I believe it is BoE that are buying. For newly created GBP. Quantitative easing and all that.

[Churchill]

Foreign Investors get their 3.6% on Govt bonds, so they are ok-ish, Bank on the other hand shafts all UK based savers including pensioners with this negative (relative to inflation) rate policy.

This is certainly not incompetence but deliberate policy that they refuse to admit to.

Get a fixed term savings account with the AA, they'll give you 3.6% net.

[TimberWolf]

Foreign Investors get their 3.6% on Govt bonds, so they are ok-ish, Bank on the other hand shafts all UK based savers including pensioners with this negative (relative to inflation) rate policy.

This is certainly not incompetence but deliberate policy that they refuse to admit to.

3.6% doesn't sound ok-ish. Who is buying them, is it foreign investors or is it the UK government?

[Lockhouse]

Foreign Investors get their 3.6% on Govt bonds, so they are ok-ish, Bank on the other hand shafts all UK based savers including pensioners with this negative (relative to inflation) rate policy.

This is certainly not incompetence but deliberate policy that they refuse to admit to.

Agreeing with AtW twice in one day. I must be ill.

[AtW]

Perhaps this "letters to the chancellor" game is just that; a trick to try to con investors into continuing to buy government bonds under the misapprehension that the bank wants to keep inflation under control; while all the time they really want to inflate away the electorates' debts.

Foreign Investors get their 3.6% on Govt bonds, so they are ok-ish, Bank on the other hand shafts all UK based savers including pensioners with this negative (relative to inflation) rate policy.

This is certainly not incompetence but deliberate policy that they refuse to admit to.

[KentPhilip]

In Brazil that is - BBC News - Brazil raises interest rates to 11.25%

They launch satellites, have got nice carnavals and also got balls to deal with inflation head on - oh, their inflation level is pityful 5.91% and threatens to remain at 5% all 2011.

In other news incompetent Governor of Bank of England will have to write yet another letter to the Chancellor explaining why inflation is too high in UK - do you reckon he even writes that letter? Probably does not even sign it properly

Is he incompetent?
Perhaps this "letters to the chancellor" game is just that; a trick to try to con investors into continuing to buy government bonds under the misapprehension that the bank wants to keep inflation under control; while all the time they really want to inflate away the electorates' debts.

[BoredBloke]

Rates on treasuries will stay low.
Rates on mortgages will go to +10%.
Rates on savings accounts will stay at 0%
The banks and building societies have to recover their losses somehow.
And the homeowners can refinance to a state-mortgage, basically renting from the state.
People will lose their jobs as the economic activity stalls.
Unemployed hungry masses will riot and plunder.
State of emergency will become permanent.

Enjoy your future

So will house prices go up though?

[ThomasSoerensen]

Rates on treasuries will stay low.
Rates on mortgages will go to +10%.
Rates on savings accounts will stay at 0%
The banks and building societies have to recover their losses somehow.
And the homeowners can refinance to a state-mortgage, basically renting from the state.
People will lose their jobs as the economic activity stalls.
Unemployed hungry masses will riot and plunder.
State of emergency will become permanent.

Enjoy your future

[gingerjedi]

U

In Brazil that is - BBC News - Brazil raises interest rates to 11.25%

They launch satellites, have got nice carnavals and also got balls to deal with inflation head on - oh, their inflation level is pityful 5.91% and threatens to remain at 5% all 2011.

In other news incompetent Governor of Bank of England will have to write yet another letter to the Chancellor explaining why inflation is too high in UK - do you reckon he even writes that letter? Probably does not even sign it properly

Spoken like a true renter, if rates went up significantly the banks would have millions of homes on their books and millions of families would be going cap in hand to the taxpayer.

I doubt Brazilian property ownership and prices are in any way comparible with the UK.

[RichardCranium]

You can read the most recent letter here:

Bank of England | Publications | News | 2010 | Letter from the Governor to the Chancellor (10.30am), 16 November 2010

Oh, wow! What a find! Kewl!

So George Osborne signs his formal, official letters "Best Wishes"? What a

[Freamon]

In Brazil that is - BBC News - Brazil raises interest rates to 11.25%

They launch satellites, have got nice carnavals and also got balls to deal with inflation head on - oh, their inflation level is pityful 5.91% and threatens to remain at 5% all 2011.

In other news incompetent Governor of Bank of England will have to write yet another letter to the Chancellor explaining why inflation is too high in UK - do you reckon he even writes that letter? Probably does not even sign it properly

You can read the most recent letter here:

Bank of England | Publications | News | 2010 | Letter from the Governor to the Chancellor (10.30am), 16 November 2010

[AtW]

In Brazil that is - BBC News - Brazil raises interest rates to 11.25%

They launch satellites, have got nice carnavals and also got balls to deal with inflation head on - oh, their inflation level is pityful 5.91% and threatens to remain at 5% all 2011.

In other news incompetent Governor of Bank of England will have to write yet another letter to the Chancellor explaining why inflation is too high in UK - do you reckon he even writes that letter? Probably does not even sign it properly