[emersonbiggins]

race to the bottom?

$this->bbcode_second_pass_quote('', 'I')nterest rates cut to 5.5%

The Bank of England today bowed to intense pressure to respond to weaker data from the housing market and the wider economy by delivering the first interest rate cut in more than two years.

The central bank's monetary policy committee trimmed its main lending rate by a quarter of a point to 5.5%, something that will offer relief to homeowners on variable rate mortgages but means lower returns for savers.

The Bank said that while it remain concerned about inflationary pressures, the global credit crunch contained "downside risks" to both output and inflation because it was tightening the flow of credit to both households and businesses.

Until recently the majority of City pundits had expected the MPC to leave rates at a six-year high of 5.75% for the fourth month running because of concerns that rising food and oil prices could push up inflation.
...
Guardian

[roccman]

Yes- the name of this game is whose economy melts down first?

[EndOfGrowth]

This is a pathetic attempt by the BOE to maintain house price inflation. Too little too late. Sentiment has swung here in the UK rgds house prices.

http://www.express.co.uk/posts/view/274 ... hird-month

By lowering the base rate, the boe have now unleashed hyper inflation. The pound is about to get trounced.

The boe could have prevented rampant HPI and saved the economy by keeping inflation in check by raising rates. Instead they opted to maintain HPI by lowering rates thus fucking the economy over.

WTF

[gnm]

Well at least we can all cry in our beer together... Only lets use your tasty UK brews - way better than the horse piss that passes for beer here (with a few exceptions).

-G

[seahorse2]

The effect of the Canadian cut and now the BOE cut has been slowing or stopping the dollar slide, which is killing Europe and Canada. So, these cuts may have as much to do with propping up the dollar as they do trying to save the UK housing market. From what I understand, Canada isn't having a housing crash, and their cut was to lower the value of their dollar, so I suspect the same is true with the UK.

[EndOfGrowth]

$this->bbcode_second_pass_quote('seahorse2', 'T')he effect of the Canadian cut and now the BOE cut has been slowing or stopping the dollar slide, which is killing Europe and Canada. So, these cuts may have as much to do with propping up the dollar as they do trying to save the UK housing market. From what I understand, Canada isn't having a housing crash, and their cut was to lower the value of their dollar, so I suspect the same is true with the UK.

[LoneSnark]

^ As the queen of England would say, "We are not amused."

[TheDude]

$this->bbcode_second_pass_quote('gnm', 'W')ell at least we can all cry in our beer together... Only lets use your tasty UK brews - way better than the horse piss that passes for beer here (with a few exceptions).

-G