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Economics

1 lurker | 24 watchers

Chrisull Jun 2023 9:49am, 23 Jun 2023 20,391 posts	Quote Pin Chrisull I think the pain inflicted by attempting it to get to 7% may well stop by then (or encourage political intervention by the Tories as basically it is destroying some of their voting coalition). To go back to my politics thread quote from Duncan Robinson of the Economist, as it's relevant here: "“Conservative government from 2010 to 2024 was a zero interest rate policy phenomenon.” Discuss"
HappyG(rrr) Jun 2023 9:54am, 23 Jun 2023 47,006 posts	Quote Pin HappyG(rrr) Sorry, I don't know what that means. Zero (or 1 to 0.1% at its lowest?) interest rate was because of the huge shock after the global financial crisis of 2008/09. The global economy benefited from quantitative easing (basically printing money!) and very low interest rates in all major economies in order to prevent massive recession. It wasn't a "policy" of the Conservative government, it was a reaction by all global governments to a global crisis. They were just following the herd. Is that what you are referring to Chris? (Sorry if I'm being thick!) G
Chrisull Jun 2023 10:08am, 23 Jun 2023 20,392 posts	Quote Pin Chrisull Yes - the quote doesn't say the Conservatives caused it or that it was a policy, but it was a "phenomenon" that they benefited from (as did new Labour), and now it's over they will pay the price at the ballot box. This is why I think they will attempt to tackle it at some point (they've also hinted that they don't believe the Bank of England should be independent in recent times) because there is an assumption (apparently an inaccurate one - see here - politicshome.com ) that mortgage and homeowners are more likely to be conservative.
Fields Jun 2023 11:32am, 23 Jun 2023 9,594 posts	Quote Pin Fields This is just ideological blindness from a bunch of people who have supposedly had the best education money can buy
HappyG(rrr) Jul 2023 10:14am, 12 Jul 2023 47,241 posts	Quote Pin HappyG(rrr) Is there a Mortgage Bills thread?! Continuing rate rises forecast by BoE. bbc.co.uk G
lammo Jul 2023 8:13am, 19 Jul 2023 12,135 posts	Quote Pin lammo A promising drop in inflation announced this morning from 8.7 to 7.9, when i believe 8.2 was expected. I'll take that, hopefully it will mean interest rate rises will ease off sooner, though i guess we may get one more
GlennR Jul 2023 10:07am, 19 Jul 2023 71,473 posts	Quote Pin GlennR From this morning's FT: "Traders expect BoE interest rates to peak just below 6 per cent early next year, compared with just above 6 per cent prior to the inflation figures."
Bazoaxe Jul 2023 10:21am, 19 Jul 2023 25,230 posts	Quote Pin Bazoaxe Is the inflation calculated over a rolling 12 month period rather than the period since the last calculation I had never really though about it until the recent rises in rates.
lammo Jul 2023 10:33am, 19 Jul 2023 12,136 posts	Quote Pin lammo That suggests a further 2 or 3 rises then, which feels pessimistic to me, although i always think raises start too late and go on too long
lammo Jul 2023 10:34am, 19 Jul 2023 12,137 posts	Quote Pin lammo Yes bazo, so 7.9% up since last June