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  • Ramsden: BOE might be in situation of cutting rates and selling assets at same time

Added at 2:14am

Added at 2:14am

Added at 2:14am

Added at 2:14am

cut rate = decrease rate = bad for currency = XXXEUR up, EURXXX down
sell asset = sell
right?
Quoting cs123
cut rate = decrease rate = bad for currency = XXXEUR up, EURXXX down sell asset = sell right?
Yes!
Quoting cs123
cut rate = decrease rate = bad for currency = XXXEUR up, EURXXX down sell asset = sell right?
It's a lot about that savings. When Fed raises rates to let's say to 5% (not saying they will of course), when some very rich human deposits 100M. After a year he has another 5M on his account. I think I'm right on this, but due to inflation money loses it's value and then you have all of this process going on. It's good for rich bad for poor (higher rates).
Title is misleading however, as they will definitely not start cutting rates this soon, but need to raise.
Quoting TheWolf
{quote} It's a lot about that savings. When Fed raises rates to let's say to 5% (not saying they will of course), when some very rich human deposits 100M. After a year he has another 5M on his account. I think I'm right on this, but due to inflation money loses it's value and then you have all of this process going on. It's good for rich bad for poor (higher rates).
5% on 100M in one year is not 5M thats 500%

Edit:- Tricked
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"We had to act forcefully last week to ensure inflation doesn't become embedded". How does raising the interest rate to 1.75% ensure that inflation at 13% doesn't become embedded?
Quoting nAVIN2007
{quote} 5% on 100M in one year is not 5M thats 500%
Haven't had a coffee still, but I am quite certain it's 5%. 5% of 100 is 5..
Quoting TheWolf
{quote} Haven't had a coffee still, but I am quite certain it's 5%. 5% of 100 is 5..
its correct lol no idea how he could get with 500% lolol
Quoting TheWolf
{quote} It's a lot about that savings. When Fed raises rates to let's say to 5% (not saying they will of course), when some very rich human deposits 100M. After a year he has another 5M on his account. I think I'm right on this, but due to inflation money loses it's value and then you have all of this process going on. It's good for rich bad for poor (higher rates).
Broadly agreed and in principle but I think it's a little more nuanced.
If inflation is higher than the Bank or Savings Rate, then everyone is losing on any liquid assets. It's the fixed, illiquid assets that, on paper, are increasing at something like the inflation rate, which does mean that asset-rich people tend to do better than those who have none. That means that inflation always hits the poorest the worst and results in increasing the wealth gap.
However it can also be said that those with large assets tend to have their more liquid holdings in riskier, better-rate deposits, or in riskier, better-rate dividend payers, etc., so the differential between any 'rental rate' and the inflation rate will be less for the better-off than the poor in that regard as well.
Inflation stiffs the least well-off, either way.
Quoting nAVIN2007
{quote} 5% on 100M in one year is not 5M thats 500%
I think you will find that it is 5 mill
Quoting TheWolf
{quote} It's a lot about that savings. When Fed raises rates to let's say to 5% (not saying they will of course), when some very rich human deposits 100M. After a year he has another 5M on his account. I think I'm right on this, but due to inflation money loses it's value and then you have all of this process going on. It's good for rich bad for poor (higher rates).
its simple
higher rates are bad for the rich, rates up assets down
#doyourownanalysisordietryin
Quoting TheWolf
{quote} Haven't had a coffee still, but I am quite certain it's 5%. 5% of 100 is 5..
5% is a big loss in this environment which is why money won't flow to the bank for that purpose
#doyourownanalysisordietryin
they won't cut rates, inflations going double digit in the UK they have to go higher
#doyourownanalysisordietryin
cpi will continue unless the dumb government act on energy in the UK.
another huge domestic energy rise coming
it's not until the end of year before we drag higher reads in YOY headline
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#doyourownanalysisordietryin
Quoting TheWolf
{quote} Haven't had a coffee still, but I am quite certain it's 5%. 5% of 100 is 5..

sorry my bad..i need a coffee
ofcourse
Quoting cs123
{quote} its correct lol no idea how he could get with 500% lolol
I just saw 5 million and thought..5%
tricked lol
Lowering rates ! Inflation soon to reach 11+ % and rates at 1.75 % .

This guy should be in jail for saying this . It's farcical
Just a horde of flying pigs within boe........upward and forward to the promised unicorn land of honey and milk!
its real rates to monitor, if CPI drops that increases the rate differential
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#doyourownanalysisordietryin
Quoting nAVIN2007
{quote} I just saw 5 million and thought..5% tricked lol
i see.. haha
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  • Posted: Aug 9, 2022 2:13am
  • Submitted by:
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    Category: Low Impact Breaking News
    Comments: 20  /  Views: 2,872

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