Bank of England

[DaveGrohl]

But it does bring you back to politics because the Banks main job is to control inflation. They don't decide to print money, provide economic growth etc.

They only have one lever to pull and because they are "independent" there isn't much else for them to do to have an effect but you can still bet people are telling BoE "get inflation down"

The article says that they were told to think about climate change too. They can’t even understand inflation ffs

 

[DaveGrohl]

And just re the idea that inflation will continue to fall (everyone’s favourite policy is crossing their fingers frankly) it just ain’t gonna. We’ve embedded it now, and the downward factors have ground to a halt. Money Week again.

There are lots of people out there who understand all this and have been predicting things reasonably accurately. None of them work in central banks. Or govts.

 

[Yale]

And just re the idea that inflation will continue to fall (everyone’s favourite policy is crossing their fingers frankly) it just ain’t gonna. We’ve embedded it now, and the downward factors have ground to a halt. Money Week again.

View attachment 1179939

There are lots of people out there who understand all this and have been predicting things reasonably accurately. None of them work in central banks. Or govts.

All it takes is a key event to upset energy supplies again and we will be well and truly back on the inflation hamster wheel. It doesn’t even have to be a local issue due to the fact the UK imports so much stuff from the far east etc.

 

[Doing it for the kids]

All it takes is a key event to upset energy supplies again and we will be well and truly back on the inflation hamster wheel. It doesn’t even have to be a local issue due to the fact the UK imports so much stuff from the far east etc.

Like the Suez Canal, ships going round will cause global grief

 

[jendan]

Like the Suez Canal, ships going round will cause global grief

Apparently why our sheepmeat prices are so high due to the Hooties. .....................every cloud and all that...............

 

[Doing it for the kids]

Be nice if cereal prices shy rocket to

 

[Yale]

Apparently why our sheepmeat prices are so high due to the Hooties. .....................every cloud and all that...............

Maybe we should fund some old Hilux pick ups for them.

 

[Levelsman]

As an aside, fiscal drag with holding IT and IHT thresholds and lowering CGT allowances is increasing tax take to new highs and squeezing a lot.
The gap between inflation and interest rates appears to be getting too large and a slight 1/4 point reduction may send out a right signal and start to mitigate the above.

 

[nelson]

core inflation is still around 6 % but no body seems to want to talk about that

 

[Werzle]

Mortgage rates mostly all creeping up because they cannot see BOE base rate falling anytime soon. Dropping it now would only be for political reasons rather than commonsense ones. People need to face facts, they have taken far too many financial risks and lived beyond there means. Cheap money has just fuelled high prices, if we had to actually pay for things they would be thousands of pounds cheaper.

 

[teslacoils]

Have you got any figures for this ? I have a developer on some sold off former farm buildings at the moment and hoping to do one plot myself.

Not that I'm happy to share publicly. Pm me and I'll see what can be done.

Why not just get the developer to do you one while they're at it? You won't be able to buy doors, tiles etc as cheap, and you'll not need to deal with cowboys wanting £500 a day to not lay bricks but toss it off instead.

 

[carbonfibre farmer]

Mortgage rates mostly all creeping up because they cannot see BOE base rate falling anytime soon. Dropping it now would only be for political reasons rather than commonsense ones. People need to face facts, they have taken far too many financial risks and lived beyond there means. Cheap money has just fuelled high prices, if we had to actually pay for things they would be thousands of pounds cheaper.

In a couple of car dealerships yesterday. When they mentioned finance, both were keen to say it had recently dropped from circa 12% to 10%

 

[teslacoils]

core inflation is still around 6 % but no body seems to want to talk about that

Don't have be a genius to see that the price of wheat has sod all impact on average household expenditure compared to energy or housing costs.

Note these are after tax. In my region average household incomes before tax are circa £35k per annum.

UK press would have you believe that it's Armageddon if we don't grow enough cereals.

 

[fudge]

Mortgage rates mostly all creeping up because they cannot see BOE base rate falling anytime soon. Dropping it now would only be for political reasons rather than commonsense ones. People need to face facts, they have taken far too many financial risks and lived beyond there means. Cheap money has just fuelled high prices, if we had to actually pay for things they would be thousands of pounds cheaper.

TBH money men don’t see the UK as a good risk for the reasons you state. Too much on tick both public and private.

 

[teslacoils]

TBH money men don’t see the UK as a good risk for the reasons you state. Too much on tick both public and private.

Also good as no room for govt to increase tax take.

Word over the table yesterday was of mass recruitment freezes at govt departments.

 

[Werzle]

In a couple of car dealerships yesterday. When they mentioned finance, both were keen to say it had recently dropped from circa 12% to 10%

Car dealerships like machinery ones have two choices in the current climate if they want to shift stock, improve finance offers or cut prices. They dont seem keen on cutting prices....yet. I would rather buy secondhand than pay anywhere nr 10%

 

[Werzle]

TBH money men don’t see the UK as a good risk for the reasons you state. Too much on tick both public and private.

They all seemed to think they could borrow themselves out of debt

 

[carbonfibre farmer]

Car dealerships like machinery ones have two choices in the current climate if they want to shift stock, improve finance offers or cut prices. They dont seem keen on cutting prices....yet. I would rather buy secondhand than pay anywhere nr 10%

Agreed. They were talking about it and brought it up, not me!
We weren't looking at new cars but 2nd hand

 

[teslacoils]

They all seemed to think they could borrow themselves out of debt

Well, UK has repeatedly shown it can't generate any productivity.

Public sector productivity down almost 2.5 percent in the year. It's a serious, serious drag.

https://www.reuters.com/world/uk/uk-public-sector-productivity-goes-bad-worse-ons-data-shows-2024-05-03/#:~:text=Public%20sector%20productivity%20measures%20the,needed%20to%20maintain%20those%20services.

 

[Rich_ard]

Have you got any figures for this ? I have a developer on some sold off former farm buildings at the moment and hoping to do one plot myself.

Building a house at the moment. If you price around or ask about it can be done. Self builds have other costs you don't have with a total build. Think a self build might be better quality though or at least potential to be if you are in charge and know what's happening.
Labour is dear but we found alot of materials that we were pricing pre covid or just as it was kicking off are back to similar prices. Not sure of the total cost yet so difficult to say exactly.