Timber Floor Au

News some say is never good, and no news isnt always bad !

Bank of ENgland are today supposedly increasing Interest rates, which will inevitably have the usual domino effect.

Marvellous just marvellous

I predict :

Crap for sellers ! full stop

Brill for ppl whove sold and are biding time on exchange rates, the next 7 days should see an upturn in the FX rate

walla

Hey Timber

Don't say that, my house is due to complete tomorow, I'm sh*tting myself in case of any last minute hiccups!!

Just a question thou out of curiosity: What effect does increase rate hikes in the UK have on the exchange rate between £s and $s oz?

Walla

bondipom

If the rise was unexpected the pound should rise and you get more dollars. The not so independant federal reserve will probably cover its arse and not raise rates until after the election.

wmoore

Oh good . Let's hope that the chief tosser can at least keep his mouth shut this month and not go round telling first time buyers not to bother buying because prices are gonna crash. If ever there was a self-fulfilling prophecy........

walla

second that

Timber Floor Au

An added % to the interest rates, strengthens the £ overseas, and places in some instances greater confidence in the "£"

The money markets £ then becomes more valuable, thus pushing down the value of foreign currency.

This in turn should return a healthier £ to $ ratio.

I suspect the $ should hit 2.7 next 10 - 14 days

Timber Floor Au

OR !! this could be the case

Bank set to hold interest rates


The Bank of England is set to give homeowners respite from higher borrowing costs by keeping interest rates on hold.

Economists forecast that the Bank's Monetary Policy Committee will keep rates at 4.5% in July after back-to-back hikes in the last two months.

The MPC is likely to pause for breath in July to assess how the latest rises have affected borrowing and spending.

But analysts say the MPC will probably resume its tougher approach next month, hiking rates by another quarter percentage point to 4.75%.

John Butler of HSBC said the committee will be keen to monitor a full month's worth of June data before it moves again.

"The language of the MPC has clearly toughened, but we expect the next move will come in August," Mr Butler said.

Simon Rubinsohn of stockbrokers Gerrard said: "No change is likely on this occasion after two consecutive monthly hikes.

"But recent comments from Mervyn King make it clear that monetary policy is still likely to be tightened further before too much longer."

CadburysFingers

Not sure where you get your duff info from, but interest rates will stay on hold today, but will probably move up a further quarter% next month.

Timber Floor Au

Look above ur post !!!

Speculation was he make reverse his decision , and hike interest rates 1 1/4 of 1 % today.

Analysts at major banks, have urged as you have said that they go up next quarter.

wmoore

This just in (always wanted to say that):
http://www.sky.com/skynews/article/0...153130,00.html

Wol

Ahem! That's a truism - the whole point of him making the comments WAS to try and put a lid on the unsustainable spiral of house prices.

Being between the "sale agreed" and "exchange" and potentially vulnerable doesn't blind me to the facts.

wmoore

Doesn't help me (For Sale without an offer) one iota though, him telling people not to buy. I've just reduced my price.
I was just surprised to hear him come out and blatantly say "don't buy a house". It seems to overstep his brief a little bit. And yes, I realise that part of that brief is to control interest rates. Hey ho.

kong

The reason King made his comments about the impending crash is because he wants to protect his arse when prices plummet. So he should!!! This boom is not his fault, it is the lying swindling Gordon Brown who created this mess. King is a well respected and learned economist. Unlike Crash Gordon Brown, who has created the most unsustainable boom in recent history. The country has 1 Trillion pounds of personal debt, First Time Buyers have all but disappered, we are heading for a recession and almighty house crash, thanks to this master of deceit and spin.

The governor can see this and he is openly expressing it now.
Call king a tosser??? I know who I would entrust my money to out of King and Brown.

Interest rates are likely to rise from August to Xmas, as King tries to stop an excessive amount of borrowing over the holiday period. I personally think that people will still cane the credit cards regardless. I predict by spring next year we will be in the midst of a recession/house price crash

If you want to read some common sense being spoken on the issue, by people who have no vested interest in the bubble madness (lenders, estate agents, new labour etc) try this link.

http://pub37.bravenet.com/forum/show...74956598&cpv=2

walla

Hey Kong

You actually slagging off something from these Isles. I have to agree with most of what you say except for your predictions of house prices crashing. What is the basis of this argument. All the stuff I've read from men in high places is that it will all just level off and not crash. Unless you are ACTUALLY one of those men in high places.

I'm trying to work out which way you swing politically. Not centre for sure, far right, no, Aboriginals you defend, you're a lefty or far left or Socialist Party or Marxist. Apologies if I'm wrong.

Trying to find chinks in your armour!!!! You mystery you.

Walla

kong

By men in high places I take it you mean the government, lenders like Wrigglesworth(RightMove) and estate agent??? A recent poll of leading economists showed that 50% expect a crash.

Check out this site, it has many good links to reports on this bubble we are now in.

http://pub37.bravenet.com/forum/show...74956598&cpv=2