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  • BOE's Miles: The time to normalise policy is coming

    From forexlive.com

    Bank of England and MPC member David Miles speaks exclusively to Mortgage Strategy magazine As we head to the MPC minutes later David Miles makes one of the last comments on interest rates ahead of that. Time of policy normalisation is coming; Bank rate will start rising over next few years but will be gradual; Seems very likely that inflation will move back up to target quite sharply towards the end of the year, or start of next year; Was a difficult decision to keep interest rates low in 2011 when CPI was at 5.25%; Was the right decision to hold off raising rates in 2011; Not overly hawkish remarks compared to his ... (full story)

I hope many traders expected this, since we're essentially having the BOE (UK) and the Fed (USA) practically competing to hike rates. really, this was an expected surprise (yes, it's a tautology, but it seems to best describe the situation at hand)

Good thing I longed the gbp/nzd. Nasty little thing; probably the most volatile major cross, surpassing even the gbp/jpy. But when you hit it right, you win hundreds of pips.

All hail the BOE. Personally, I usually TP before a volatile central bank vote, but for the BOE announcement today at 5pm EST, I think I'll just opt to move my SL instead for my sterling longs.

I don't think we'll get a bearish vote from the BOE on Jul 22, not with this announcement having been made.
Cable will hit by the end of the year 1.65-1.70 around there, with or without Hike. fundamentally is very strong. After a fragile recovery US, can't risk a Rate Hike. they just got up on their feet. They are not so stupid to risk the recovery of the economy - it is all manipulation talk to move the markets.
from yesterday a lot of amazing fundamental news
Quoting Alexeii
Cable will hit by the end of the year 1.65-1.70 around there, with or without Hike. fundamentally is very strong. After a fragile recovery US, can't risk a Rate Hike. they just got up on their feet. They are not so stupid to risk the recovery of the economy - it is all manipulation talk to move the markets.
Like the UK can even think of raising rates , even a .25% rise would reverse the house price ponzi scheme replacing illusory wealth with Grecian debt ..... never gonna happen, been hearing the same story for 6 years and its all just hot air and rubbish.

Still there are always enough folks out there that need to get orders in place in case it does making GBP crosses my favourite
Quoting NewtonsCash
Like the UK can even think of raising rates , even a .25% rise would reverse the house price ponzi scheme replacing illusory wealth with Grecian debt ..... never gonna happen, been hearing the same story for 6 years and its all just hot air and rubbish.

Still there are always enough folks out there that need to get orders in place in case it does making GBP crosses my favourite
Ok, buy dollar - GOOD LUCK!
Collapse is coming, that is for sure
Quoting justiniuxas
Collapse is coming, that is for sure
Nothing is for sure in this game..
nobody move nobody get hurt
Quoting thrishelle
nobody move nobody get hurt
nobody get profit
Quoting vetpriyamana
nobody get profit
im giving in
Quoting thrishelle
nobody move nobody get hurt

Quoting vetpriyamana
nobody get profit

Hahahahahaaaaa....
From the tips to the dips, it's all about the pips
Quoting kazachokings
Nothing is for sure in this game..
+1
Carbon-Dioxide: the gas of life!
Quoting vetpriyamana
from yesterday a lot of amazing fundamental news
Really?

Just one GBP announcement, PSB on its target.

What amazing news did you discover?
Carbon-Dioxide: the gas of life!
What is normal since all that QE ?
"BOE's Miles: The time to normalise policy is coming"

As is the colonisation of Mars
Come with me if you want to live....
These merchant bankers are responsible for the boom and bust cycle. First they make money cheap, everyone hitches a ride. Prices rise, then once they have everyone hooked, they limit supply screwing everyone in the process.

They should all be arrested and charged with fraud, but wait they are the system, so its what they say goes. When the collapse comes and it will, everyone will be wow what happened?
Quoting Ill-b-back
"BOE's Miles: The time to normalise policy is coming"

As is the colonisation of Mars
Carbon-Dioxide: the gas of life!
Quoting Hurst
These merchant bankers are responsible for the boom and bust cycle. First they make money cheap, everyone hitches a ride. Prices rise, then once they have everyone hooked, they limit supply screwing everyone in the process.

They should all be arrested and charged with fraud, but wait they are the system, so its what they say goes. When the collapse comes and it will, everyone will be wow what happened?
I've been really boring about this for a long, long time.... the UK economic policy since 9/11 has been a carbon copy of The South Sea bubble of 1720 (nothing really changes then

Replace UK housing for shares in South Sea Bubble Corp and there you have it, the insiders (Duke of Westminster et al) have already off loaded all the property they don't need to the new wealthy (this time it's Russians & Chinese) , 1980's Arabs & Japanese , 1960's Americans , now they collapse the system with higher rates , property collapses (along with all the derivatives tied up in pensions etc) and .. Bob's your uncle 2022 that flat in Chelsea you bought last year for £1.8M is now valued at £180k and you'll still struggle to find a buyer or a lender willing to give you a 50% mortgage.

Anyone still in the UK property market my suggestion is Sell then Rent
Quoting NewtonsCash
I've been really boring about this for a long, long time.... the UK economic policy since 9/11 has been a carbon copy of The South Sea bubble of 1720 (nothing really changes then

Replace UK housing for shares in South Sea Bubble Corp and there you have it, the insiders (Duke of Westminster et al) have already off loaded all the property they don't need to the new wealthy (this time it's Russians & Chinese) , 1980's Arabs & Japanese , 1960's Americans , now they collapse the system with higher rates , property collapses (along with all the...
Completely agree man. Spot on.

They can either crash the market or keep the low rates. If they crash the market everything you just said will happen.

On the other hand if they keep rates low and print more then there will be a currency crisis.

Though the UK has so much more debt now than it did just 6 years ago, if they do decide to raise rates they will prick the bond bubble too. Which means funding their debt will become impossible. Also it will cause a rush globally to dump UK bonds as they are very over valued, no one will want to hold on to these bonds if interest rates rise. Not to mention their banks will become bankrupt if bond market crashes.

Either way this is a disaster waiting to happen.
Quoting Bankerssuck
Completely agree man. Spot on.

They can either crash the market or keep the low rates. If they crash the market everything you just said will happen.

On the other hand if they keep rates low and print more then there will be a currency crisis.

Though the UK has so much more debt now than it did just 6 years ago, if they do decide to raise rates they will prick the bond bubble too. Which means funding their debt will become impossible. Also it will cause a rush globally to dump UK bonds as they are very over valued, no one will want to hold...
Absolutely, damned if they do, damned if they don't... so, hence following the Duke of Westminster, the families been 2nd in wealth to the Royals for 400 years and has specialised in offloading and loading up on property to maintain and increase their wealth and they get the best advice in advance on rate movements (well, how else do you keep a property empire like that going , anyways , the current Duke concluded his sale's last Summer.. London's already off 20% since Autumn ergo rate rise imminent (Carney will fight it tooth and nail being a Ponzi exponent of the 1st order but, they'll offer him a tack peerage and he'll rollover... probably already has)

Smart bloke the Duke , Sell high, buy lo...... here's my latest hot tip.. the historic Dow / Gold reference is 4:1 , it's currently 16:1 ergo Sell stocks / Buy Gold and you don't get more contrarian than that
Its time the masses took back the power and cut these greedy manipulators out of the loop.
this is great news if your Trading the long side

He basically just said buy the dips
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More like winter is coming, raising rate will be postponed, how can they when debt is higher than ever, unless they want another lehman brothers event.
We hear this from beginning of a 2014. Even 2 members of the MPC voted for rate change and then voted back for no change. UK economy is floating between bare recovery and close to shrink mode.
Quoting michaelpelly
We hear this from beginning of a 2014. Even 2 members of the MPC voted for rate change and then voted back for no change. UK economy is floating between bare recovery and close to shrink mode.
Hey! UK is in recovery! (until the next MPC meeting )
Carbon-Dioxide: the gas of life!
Quoting Exodus
Hey! UK is in recovery! (until the next MPC meeting )
Right! :-)
Quoting Vermillion
Good thing I longed the gbp/nzd. Nasty little thing; probably the most volatile major cross, surpassing even the gbp/jpy. But when you hit it right, you win hundreds of pips.
Couldn't agree more .
Pity the fool who thinks they'll make it overnight...
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  • Posted: Jul 22, 2015 1:59am
  • Submitted by:
     Newsstand
    Category: High Impact Breaking News
    Comments: 27  /  Views: 7,139