Bank of England cuts by 1.5%

From 4.5 to 3%. FUCK ME!! What will this do to Sterling?

cor blimey, I thought talk of 100bps was far-fetched!

Looks like the M1 to Newry / Belfast will be even busier than expected from now until Xmas !

Woo hoo! Everyone go North for the Chrimbo shopping!

Will the ECB match it? XD

Fuck me. :open_mouth:

They pressed the ejector button.

Anything you can cut, we can cut deeper, we can cut anything deeper than you…

The initial £/$ reaction was negative but it is now +0.5% on the day. £ is +1% against the €.

Well it worked for the Japanese so why not?

No you cant No you cant No you cant. :laughing:

BOE must be mighty scared about shocking bad news coming down the track in the next couple of months

Smells like panic!!

Off to the lifeboats!!!

YNWA

Duplex - just saw your post - no comfort, the Japs made a complete liathróidí of it back then - took them yons to get out ot the manure

Bill

Hmm… should I fix at 0% for 150 years or wait until they start paying me to borrow? :laughing:

Could this be a panic move in response to possible deflation in the near future.

Yes, it means that BOE now see deflation as the primary risk.

Its DEFLATION, people.

Yes the bank of England in 2008 saw the prospect of people having to live within their means,to pay back excessive levels of personal debt and the fact that house prices wouldn’t appreciate at double digit annual rates as so horrific it decided the best solution was to shower the country with free money…

So endeth the history lesson children,your homework tonight is to discuss the factors that led to the average house price rising to £10 million.

Here is the Bank of England’s policy on inflation from their website,anyone see any contradictions with what has happened to house,commodity,food and energy prices and the 1.5% rate cut announced this morning?

More on Monetary Policy

A principal objective of any central bank is to safeguard the value of the currency in terms of what it will purchase. Rising prices – inflation – reduces the value of money. Monetary policy is directed to achieving this objective and providing a framework for non-inflationary economic growth. As in most other developed countries, monetary policy operates in the UK mainly through influencing the price of money – the interest rate. In May 1997 the Government gave the Bank independence to set monetary policy by deciding the level of interest rates to meet the Government’s inflation target – currently 2%.

Low inflation is not an end in itself. It is however an important factor in helping to encourage long-term stability in the economy. Price stability is a precondition for achieving a wider economic goal of sustainable growth and employment. High inflation can be damaging to the functioning of the economy. Low inflation can help to foster sustainable long-term economic growth.