Sterling is now under valued.

[Pipers]

With inflation ticking up and the $ weakening I am firmly of the opinion  that sterling should be back within its normal range, ok the bottom end of the range of GBP/USD 1.4 and the BOE should increase interest rates by 0.25% .  

Hammond will be getting  a letter from Carney saying wages are low so no need to increase interest rates,  but they will be if the £ is low if he and his merry band increased interest rates then prices would fall and wages would feel higher as the UK is a service economy mostly.         

[KDave]

The news tells me that the Bank of England thinks inflation has peaked so no need to raise rates. An excuse to continue 'carnage do nothing' policy. They are cautious and want to wait, test peak theory and buy time, before they are forced to raise.

I've not been paying attention but has the US dollar continued it's fall? If so the next raise will be the fed, which will put the pressure on BOE to raise, it won't be done without that outside pressure imo. 

[FlorinCollector]

I seen today inflation now 3.1% isnt the target for BOE 2%

[kimchi]

It's all fake news and manipulation imo, and they'll do with the markets and inflation etc what they want. Inflation and interest rates are the same as the answer to Fukushima (and QE). When the radiation (or QE) exceeds 'safe' limits they just raise the 'safe limit'.

The government's been telling us for long enough now that everything they don't like is 'fake', the penny should have dropped (imvho).

If North Korea is brought into the fold (via this fake 'nuclear threat' that China will resolve) and they can get Iran into the banking cartel  as well the final domino has fallen and they can collapse the whole thing if they like. We didn't take down our former allies Saddam Hussein, Al-Qaida and Gaddafi for nothing. We don't go after Syria only for the oil route to Russia (though that seems handy, for now - back up plan - ?).

Two or three days ago BBC News put a vid on there which showed them going into schools teaching children how to spot 'fake news' (lol). They used the picture of the 'Muslim' woman walking 'casually' by on Westminster Bridge in front of 'victims' (all totally debunked now) as an example of why not to trust social media. That image originally went viral largely because of BBC-connected folk, did it not?

You have to laugh, otherwise you don't have many options left. Protect your family.

 

[Roy]

Don't forget that many are uneducated, ignorant and naive. They think Jeremy Kyle is real.

 

[FlorinCollector]

I dont know anymore when watching the news if something is real or fake. Everyone seems to have hidden agendas and lies.  

 

[Pipers]

On 12/12/2017 at 22:06, Roy said:

Don't forget that many are uneducated, ignorant and naive. They think Jeremy Kyle is real.

 

What Jeremy Kyle is not real and is propaganda to make everyone think the poor are stupid lazy b-stards. Who would of thought it!!!

[Pipers]

The BOE are expected to keep rates as they are, which is a mistake a small increase should be taken. 

In the UK the currency is £ and we buy and sell in that sterling over many years the BOE have been looking after their friends and not the country this has certainly been the case since it sets rates. IMO the Chancellor should take back control of interest rates. 

IMO The £ is under valued against the USD. 

[silversky]

@Pipers The problem with the chancellor taking back control is that it would just replace one group of market riggers with another.  You either let an elite private organisation run the monetary scam (for their own ends?) or you have a political organisation running the monetary scam for possibly only one very short term and they always abuse it.  Not a great choice.  Truth is that whoever runs the interest rates, our un backed fiat is still a scam.

[Pipers]

@silversky I do agree with you about both groups, plus the fact the currency is fiat rubbish.  I just have more confidence in the £ now than 6 months ago, when I look at other currency's eg the USD I think the £ is under valued. Remember workers got a pay cut when the BOE devalued the £ now it is time to revalue up to around 1:4 -1 . 

[metalslug]

The pound being lower has helped certain sectors of our economy though (manufacturing), the order books haven't been this strong since the 80s. Sure foods and goods that are imported have risen as a result, but sterling was overvalued before Brexit.

As someone who works for an engineering company the last 2 years before brexit were shite (Not helped by the oil price fall), sales for new machinery were slow and in one case we had a certain customer who built parts for a certain British car loosing contracts to European countries who were cheaper thanks to a lower Euro.

 

 

[Guest]

I don't think the £ is undervalued. There is still room for another 20 or 25% depreciation within the next 5 years.

[Pipers]

I think the usd is weak and with interest rates being left the same after  this weeks boe meeting we may see sterling reach 1.45-1 against the usd.

[Pipers]

IMO this is a strong statement by the BOE, is good for the majority of the economy and good for sterling. I can see see sterling being strong over mid term at least.