Exchange rate
#121
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Re: Exchange rate
Agreed the US is in a world of doo doo.
#122
Re: Exchange rate
I'll be surprised if the BoE can cut rates before 2010; I think we're about to see a sustained period of stagflation again as China starts exporting inflation to the West rather than deflation.
#124
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Re: Exchange rate
Not with inflation currently at the highest level in a decade: and that's just the fudged inflation numbers, not real inflation.
I'll be surprised if the BoE can cut rates before 2010; I think we're about to see a sustained period of stagflation again as China starts exporting inflation to the West rather than deflation.
I'll be surprised if the BoE can cut rates before 2010; I think we're about to see a sustained period of stagflation again as China starts exporting inflation to the West rather than deflation.
The comment i was referring to was 'CPI likely to slow to around 2% during the course of 2007'
doo doo, the family friendly version yes.
#125
Re: Exchange rate
The only way CPI will drop to 2% is if Gordon Brown fiddles the figures even worse than he already has, and then the disparity between CPI and RPI will only get more and more blatant. The last time RPI was this high, interest rates were over 10%, but that was back when we had a government that actually tried to keep inflation under control.
#126
Re: Exchange rate
So if the US are in the sh1t, how will this reflect on the Canadian economy or wont it?
#127
Re: Exchange rate
The parts that rely on America will be in the crap too, but I'm not sure about the parts that rely on China (e.g. oil and other resources). China will be hit by a US recession, but I'm not sure if it will be hit hard enough to create a global recession.
#128
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Joined: Apr 2005
Posts: 4,842
Re: Exchange rate
Does anyone agree that Canadian oil is the only buffer Canada has to stop the US problems cascading through their economy?
#129
Re: Exchange rate
Obviously, as I said, Chinese and American problems are connected, but some economists seem to believe that China won't be hit hard by a US recession while some believe China will be hit even worse than America; so it's hard to tell.
#130
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Location: Was Brentwood, Essex Now Wasaga Beach, Ontario
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Re: Exchange rate
European Central Bank just signaled to the market they will raise rates next month, this was expected. Euro should remain strong and may add a little strength to GBP£.
#131
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Joined: May 2007
Location: Liversedge, West Yorkshire, England
Posts: 304
Re: Exchange rate
Hmmm... Is it me or has the exchange rate got worse by quite a lot in the last two hours or so?
#132
Re: Exchange rate
Ouch. Yes, I guess that people are selling off pounds now they know the interest rate rise is only 0.25%.
#133
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Joined: Apr 2005
Posts: 4,842
Re: Exchange rate
Hey Mark and cneldred, is this economy and world market free question/answer service something that'll be available indefinitely?