Bank of England raises rates to 2.25%, despite likely recession

[Scott]

 

 

 

LONDON, Sept 22 (Reuters) - The Bank of England raised its key interest rate to 2.25% from 1.75% on Thursday and said it would continue to "respond forcefully, as necessary" to inflation, despite the economy entering recession.

The BoE estimates Britain's economy will shrink 0.1% in the third quarter - partly due to the extra public holiday for Queen Elizabeth's funeral - which, combined with a fall in output in the second quarter, meets the definition of a technical recession.

Economists polled by Reuters last week had forecast a repeat of August's half-point increase in rates, but financial markets had bet on a three-quarter-point rise, the biggest since 1989, barring a brief, failed attempt in 1992 to support sterling.

https://www.reuters.com/markets/europe/bank-england-raises-rates-225-despite-likely-recession-2022-09-22/?utm_source=Sailthru&utm_medium=newsletter&utm_campaign=reuters-business&utm_term=Business News - 2021 - Master List

 

[Chomper Higgot]

Up next, Truss works against the BoE. cuts taxes to inject more money into the economy already suffering inflation.

 

But she’s promised 2.5% growth as the economy heads into recession, so throw caution to the wind.

 

 

 

 

[thaibeachlovers]

Recession or uncontrolled inflation? IMO inflation is worse for those with a fixed income such as pensioners, so bring on the raises.

Also, it'd be a nice change to actually get some interest on money in the bank.

[pegman]

4 hours ago, thaibeachlovers said:

Recession or uncontrolled inflation? IMO inflation is worse for those with a fixed income such as pensioners, so bring on the raises.

Also, it'd be a nice change to actually get some interest on money in the bank.

So uncontrolled inflation and a crashing £ it is with a Tory reverse Robin Hood mini-budget. Take from poor pensioners to give to super rich banksters.  Well at least the poor Brexiteer Con voters amongst them can rejoice in the fact that there will be fewer Poles around to share the misery.

 

https://www.independent.co.uk/news/uk/politics/mini-budget-today-kwasi-kwarteng-stamp-duty-truss-latest-b2173590.html

 

 

 

 

[Mac Mickmanus]

41 minutes ago, pegman said:

So uncontrolled inflation and a crashing £ it is with a Tory reverse Robin Hood mini-budget. Take from poor pensioners to give to super rich banksters.  Well at least the poor Brexiteer Con voters amongst them can rejoice in the fact that there will be fewer Poles around to share the misery.

 

https://www.independent.co.uk/news/uk/politics/mini-budget-today-kwasi-kwarteng-stamp-duty-truss-latest-b2173590.html

 

 

 

 

I think that the Conservatives know they are going to lose the next election , and they are getting the economy ready for the handover of power to Labour , and let them deal with it 

[pegman]

4 hours ago, Mac Mickmanus said:

I think that the Conservatives know they are going to lose the next election , and they are getting the economy ready for the handover of power to Labour , and let them deal with it 

£ now down $.05 in the last week. We are watching a train wreck happen in real time.  This finance minister seems set on making the UK economy equivalent to that of his parent's Ghana.  Pity the UK expat 

[Mac Mickmanus]

37 minutes ago, pegman said:

£ now down $.05 in the last week. We are watching a train wreck happen in real time.  This finance minister seems set on making the UK economy equivalent to that of his parent's Ghana.  Pity the UK expat 

Really no need to bring the guys Parents into the frame and their African origins  , that could be considered to be racist .

   The measures KK took were necessary and predicted , when the USA raised their interest rates a few weeks ago, the UK really had to do the same 

[thaibeachlovers]

10 minutes ago, Mac Mickmanus said:

Really no need to bring the guys Parents into the frame and their African origins  , that could be considered to be racist .

   The measures KK took were necessary and predicted , when the USA raised their interest rates a few weeks ago, the UK really had to do the same 

???? He was referencing Ghana, not denigrating the parents personally.

 

Google tells us that not all is well in that country.

How is Ghana's economy now?

The country remains at high risk of debt distress with a debt-to-GDP ratio of 77.5% in September 2021, against 76.1% in December 2020.

[pegman]

2 hours ago, Mac Mickmanus said:

Really no need to bring the guys Parents into the frame and their African origins  , that could be considered to be racist .

   The measures KK took were necessary and predicted , when the USA raised their interest rates a few weeks ago, the UK really had to do the same 

Strongly disagree. The tax cuts which are in the main going to the rich were not necessary nor predicted.  What was predictable was the pound sterling tanking once these measures were announced. There is near total  consensus among financial experts that they will lead to much higher inflation. The Telegraph is overjoyed so that should tell you who benefits. 

 

 These American commentators seemed incredulous as to why the UK government would do such a thing.  Even referencing it causing a £ crisis. 

 

 

Edited September 23, 2022 by pegman

[JayClay]

8 hours ago, Mac Mickmanus said:

I think that the Conservatives know they are going to lose the next election , and they are getting the economy ready for the handover of power to Labour , and let them deal with it 

Somebody else came up with a similar theory recently. That because they know they're going to lose the next election, they're just lining the pockets of themselves and their own while they can.

 

It makes sense to me. How can any sane political party go down such an obviously destructive path, while making predictions that they have absolutely no chance of achieving?

[Chomper Higgot]

3 hours ago, Mac Mickmanus said:

Really no need to bring the guys Parents into the frame and their African origins  , that could be considered to be racist .

   The measures KK took were necessary and predicted , when the USA raised their interest rates a few weeks ago, the UK really had to do the same 

KK didn’t raise UK interest rates, that was the Bank of England.

 

KK has enacted a budget that hands £tens of billions of tax cuts to the wealthy.

 

The predicted outcome is increased inflation and higher national debt.

Pennies for the poor, Ritchie’s for the already wealthy.

 

[Chomper Higgot]

Oops!

 

https://www.x-rates.com/graph/?from=GBP&to=THB&amount=1

[placeholder]

6 hours ago, pegman said:

£ now down $.05 in the last week. We are watching a train wreck happen in real time.  This finance minister seems set on making the UK economy equivalent to that of his parent's Ghana.  Pity the UK expat 

Actually, Ghana's economy seems to be doing quite well. At least as far as GDP per capita is concerned

https://www.macrotrends.net/countries/GHA/ghana/gdp-per-capita#:~:text=Ghana gdp per capita for,a 8.99% increase from 2017.

[pegman]

2 hours ago, placeholder said:

Actually, Ghana's economy seems to be doing quite well. At least as far as GDP per capita is concerned

https://www.macrotrends.net/countries/GHA/ghana/gdp-per-capita#:~:text=Ghana gdp per capita for,a 8.99% increase from 2017.

I was thinking more in line with Ghana being a developing country. It's median wealth per adult ranks in at #123. 

 

https://en.m.wikipedia.org/wiki/List_of_countries_by_wealth_per_adult

[bannork]

I could tell you a joke about trickle down economics but 99% of you wouldn't get it .

[Bluespunk]

Tories reaping as the membership sowed. 
 

https://www.theguardian.com/uk-news/2022/sep/23/tory-backbenchers-despair-at-toxic-mini-budget?CMP=Share_iOSApp_Other

[Mac Mickmanus]

2 minutes ago, Bluespunk said:

Tories reaping as the membership sowed. 
 

https://www.theguardian.com/uk-news/2022/sep/23/tory-backbenchers-despair-at-toxic-mini-budget?CMP=Share_iOSApp_Other

This what you wanted .

Truss to win and her policies  being detrimental to the UK economy .

[Bluespunk]

6 minutes ago, Mac Mickmanus said:

This what you wanted .

Truss to win and her policies  being detrimental to the UK economy .

Nope. I wanted truss to win as she will be the catalyst that ends this tory govt.

 

However I am still shocked at how badly her misrule has begun with this ill conceived divisive “benefit the rich” budget. 
 

It has even divided the parliamentary party…I hear election bells beginning to chime. 

Edited September 24, 2022 by Bluespunk

[Mac Mickmanus]

1 minute ago, Bluespunk said:

Nope. I wanted truss to win as she will be the catalyst that ends this tory govt.

 

However I am still shocked at how badly her misrule has begun with this ill conceived divisive “benefit the rich” budget. 

But that is why you wanted Truss to win .

This is what you wanted and this is what you got .

 

[placeholder]

14 minutes ago, Mac Mickmanus said:

If Boris didn't go, then there wouldn't have been a vote to replace him 

I'm still wondering how did the left make him go? All those leftists in the Tory Cabinet?

[Mac Mickmanus]

Just now, placeholder said:

I'm still wondering how did the left make him go? All those leftists in the Tory Cabinet?

The constant negative media stories about , turning minor situations into major issues by constantly reporting them as headline news 

[Bluespunk]

Nope, what I want (and I should know so stop trolling by telling me what I wanted), as my posts on the leadership election made clear, is an end to this administration.
 

A general election should now take place to judge the memberships idiotic choice. 

5 minutes ago, Mac Mickmanus said:

But that is why you wanted Truss to win .

This is what you wanted and this is what you got .

Edited September 24, 2022 by Bluespunk
Weird spacing

[Mac Mickmanus]

2 minutes ago, Bluespunk said:

Nope, what I want (and I should know so stop trolling by telling me what I wanted), as my posts on the leadership election made clear, is an end to this administration.
 

A general election should now take place to judge the memberships idiotic choice. 

But you also wanted Truss to win 

[Bluespunk]

1 minute ago, Mac Mickmanus said:

But you also wanted Truss to win 

Nope. I said the opposition would probably want truss to win, because she will be a disaster and a gift to them. 

[placeholder]

6 minutes ago, Mac Mickmanus said:

The constant negative media stories about , turning minor situations into major issues by constantly reporting them as headline news 

It was his deep defects of character that did him in. As his former classics teacher noted:

 

 "Boris really has adopted a disgracefully cavalier attitude to his classical studies. [He] sometimes seems affronted when criticised for what amounts to a gross failure of responsibility (and surprised at the same time that he was not appointed Captain of the school for the next half).

"I think he honestly believes that it is churlish of us not to regard him as an exception, one who should be free of the network of obligation that binds everyone else."

https://www.thenational.scot/news/19858214.boris-johnson-school-letter-eton-teacher-despairs-pms-effortless-superiority/

[Chomper Higgot]

28 minutes ago, Mac Mickmanus said:

This what you wanted .

Truss to win and her policies  being detrimental to the UK economy .

Nonsense.

 

My comments were consistent.

 

Nobody but Tory Party members got a vote,  both candidates where poor, but Truss was/is particularly poor, she’s a gift to the opposition.

 

Observing that Truss’ policy statements in the run up to the final ‘Tory Party vote’ would cause havoc in the economy and make life worse for people already suffering is not by any stretch wishing those problems on the wider British public.

 

This is a Tory MP selected by Tory Party members, she and her policies are all 100% Tory, nothing whatsoever to do with those who pointed out her obvious flaws.

[Chomper Higgot]

24 minutes ago, Mac Mickmanus said:

But that is why you wanted Truss to win .

This is what you wanted and this is what you got .

 

Repeating your nonsense doesn’t make it true.

 

Truss and her policies are all the choice of the Tories who selected her.

 

Nobody outside the Tory Party had any day in the matter.

[Chomper Higgot]

22 minutes ago, Mac Mickmanus said:

The constant negative media stories about , turning minor situations into major issues by constantly reporting them as headline news 

His corruption, ineptitude and of course constant lies.

 

He was ousted by his own Party, nobody made them do it.

[RayC]

To be fair to Truss and Kwarteng, they stated that they rejected Treasury (Economic) orthodoxy and they have done just that. 

 

If it works then they will deserve another term. If it doesn't then forthcoming government(s) could be left trying to repair the damage for the next decade or more.

[Chomper Higgot]

1 minute ago, Mac Mickmanus said:

I was specifically replying to one poster who wanted Truss to win . 

   Although he did seem to want Truss to win because it would be terrible for the U.K.,  but he still wanted Truss to win 

I only recall one poster openly supporting Truss during the selection process, he’s definitely not on the left of the political spectrum and oddly very quiet these days.

 

Trying to blame people on the political left for this policies of this extreme rightwing PM is scurrilous.

 

She’s a Tory, she was selected by members of the Tory Party, her policies are all Tory party policies.

 

The mess she’s making is on her, her party and those who voted for this failing government.