One of the reasons I remained bullish on the pound is the thought that the BOE had little room to drop interest rates and keep inflation in control including house inflation which is in need of a correction. I thought that as soon as rates were dropped that would be a red rag to a bull and the borrowing would start again so this would not happen.
The thing that scuppered that thought recently was the fact that banks started to restrict the money flow (the credit crunch)and it has been a lot harder to borrow, like the 100% mortgage being stopped within the last year when there were many back then and of course all this will affect house prices.
It seems that the fact that the government and BOE have been proactive with this problem that is enough to take us higher.
The thing that scuppered that thought recently was the fact that banks started to restrict the money flow (the credit crunch)and it has been a lot harder to borrow, like the 100% mortgage being stopped within the last year when there were many back then and of course all this will affect house prices.
It seems that the fact that the government and BOE have been proactive with this problem that is enough to take us higher.

#doyourownanalysisordietryin 
