The Bank of England has given the clearest indication that it can that interest rates will rise in the future.
And it has done all they can to say that this will happen after May 2015. Their argument is that spare capacity in the economy has to be used up first and a range of forecasts over an 18 month period have been provided by them. I think it takes little effort to read some very clear signals into that.
So, whoever takes charge of the economy in 2015 will have to deal with a pending financial crash as households on the brink of financial balance begin to tip over the edge as mortgage costs increase, however gradually.
Whoever said we were out of trouble?
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They wont rise before, I think we all knew that!
I have complained for a little time now that the extent to which interest has been held down was building up dangerous distortions, as well as damaging a savings element which impacts on the nature of real investment. My view is that pushing it past 2015 is high risk, not only because the distortions are worsening. but there could be severe problems that could trigger real rates going much higher than they needed to. Back to the 1970’s?
So he’s going to wait until after the next General Election! Conspiracy theories anyone?
A lot of this seems to be based on bogus measurements:
Bogus unemployment figures based on inactive self employment and sanctioned claimants.
Bogus measure of inflation that does not include real costs.
Bogus measure of GDP.
carney is nothing more than a card sharp.
I really don’t believe, unless the market leaves them no choice, that interest rates will be put up!
They know full well this so-called “recovery” will be washed away like a sandcastle in the waves if they do!
Completely unrelated – just for cuiosity!
I tried to send a petition to a Gov Minister and have been more than a little startled ans amused to get a response from ‘pssof?’ Not quite certain if this shows imagination or juvenile humour. Think it means’we aint listening and we dont care’.
Isn’t this economy just crying out for credit controls? Surely what we need is credit going to fund new capital, not fuel house price rises and consumer debt. But if consumers are constrained, as they are because of falling real wages and should be by credit controls, and exporting is hardly a doddle, demand to generate real investment can only logically come from government.
I gave long argued we need capital controls