| |
Major Site Upgrade in Progress |
 |
|
 |
|
Sarah
Money Manager
Joined: 16 Jul 2004
Posts: 831
Cash Points ££ 12024.38
|
|
|
 |
|
 |
|
 Posted: Tue Jan 16, 2007 4:55 pm Post subject: UK inflation hits the Bank of England's 3% CPI limit |
 |
|
|
 |
|
 |
|
|
|
|
The UK inflation rate as measured by the Consumer Price Index (CPI), hit the upper limit of 3% today. The highest level in over a decade supports the Bank of England's surprise decision to raise interest rates last week to 5.25% from 5%. (Bank of England raises UK interest rates to 5.25%, catching the financial markets off guard )
The CPI figures virtually guarantee further rises in UK interest rates during 2007.
The Market Oracle warned of substantial interest rate hikes during 2007 to 5.75% by the 2nd half of 2007 in the articles of 26th December 2006, UK Interest Rate forecast for 2007 - Bank of England to do battle with inflation and 7th November 2006 UK Interest Rates could rise to 5.75% in 2007
Today's news not only supports the interest rate rise expectations but brings forward the possibilities that interest rates may even exceed the 5.75% target. However, the impact of the recent sharp falls in energy prices will likely reduce this possibility if that trend persists for the duration of the 2007.
Sterling is expected to be further supported by the news, as higher UK interest rates will further attract carry trade investments into UK sterling, i.e. the borrowing in low interest rate currencies such as the Japanese Yen, and the investment in higher interest rate currencies such as the British Pound. |
|
|
|
|
|
|
|
JayJay
Newbie
Joined: 25 Oct 2006
Posts: 18
Cash Points ££ 333.60
|
|
|
|
|
|
|
| Posted: Wed Jan 17, 2007 2:47 am Post subject: |
|
|
|
|
|
|
|
|
|
|
I saw on the news that the actual inflation rate for a lot of people is far higher than what the official figures reveal, at least 5% and for pensioners more like 8% !
Also many mortgage providers are withdrawing fixed rates, looks like they are gearing up to much higher interest rates |
|
|
|
|
|
|
|
|
|
|
housebuyer
Money Saver
Joined: 02 May 2005
Posts: 81
Cash Points ££ 2815.22
|
|
|
|
|
|
|
| Posted: Wed Jan 17, 2007 3:01 am Post subject: BBC - Why the sharp rise in inflation? |
|
|
|
|
|
|
|
|
|
|
When the retail prices index was last growing this quickly, 15 years ago, interest rates were at 10.5%.
They're not likely to go that high any time soon, but that does emphasise that in the decade of Bank of England independence we have become accustomed - perhaps too accustomed - to inflation that's low and stable, and the interest rates that go with it.
We've enjoyed all this, partly thanks to falls in the global prices of manufactured imports, from Chinese textiles to toys.
And thanks to high levels of inward migration which have kept wages in check and removed bottlenecks in the economy.
Those disinflationary pressures, allowed the Bank of England to keep rates low, and let spending grow fast without the rising prices that curtailed previous periods of growth.
Energy pressures
So what if anything, has gone wrong now?
Arguably, the benefit of cheap imports from is China is beginning to diminish as higher energy prices kick in.
The average price of manufactured goods (excluding fuel) is still falling. But it's not falling as quickly as it was a year ago. So its downward effect on the overall inflation figure is weaker than it used to be.
If that's right, the Bank has to start applying the brakes. Indeed, it might be thinking it should have done so earlier.
Blip?
http://news.bbc.co.uk/1/hi/business/6268819.stm |
|
|
|
|
|
|
|
Sugarbabe
Beginning Saver
Joined: 19 Jun 2006
Posts: 49
Cash Points ££ 1027.04
|
|
|
|
|
|
|
| Posted: Fri Jan 19, 2007 3:27 am Post subject: |
|
|
|
|
|
|
|
|
|
|
Don't forget the RPI rate which is running along at 4% now !
I think the days of low inflation are coming to an end, and I will heed the recent flood of articles suggeting we should all buy gold !  |
|
|
|
|
|
|
|
cardjunkie
Professional Investor
Joined: 24 Jul 2004
Posts: 311
Cash Points ££ 2248.20
|
|
|
|
|
|
|
| Posted: Sat Jan 20, 2007 5:40 am Post subject: |
|
|
|
|
|
|
|
|
|
|
RPI is at 4.4% ! can you imagien that ! Forget CPI, RPI is the real measure of inflation !
All your investments at 5% only barely cover inflation !! |
|
|
|
|
|
|
 |
Online Finance Tools & Calculators |
 |
| Credit Score Calculator |
Easy to use online Credit Scoring tool - Calculate your credit score now online for FREE ! using the Moneyforums.co.uk credit scoring tool. Also TEN Tips on improving and mainting a good credit rating ! |
|
| Quick Health Calculator |
Easy to use quick health calculator to help you get started on the path to fitness. Calculates your body mass index (BMI). |
|
| "When will I die ?" Calculator |
Calculate when will you die based on your current life style and then more importantly what you can do about extending your lifespan ! |
|
| Mortgage Calculator |
Easy to use online Mortgage calculator tool - Calculate how long it will take to pay off your mortgage and what your monthly repayments will be as well as interest charged per month per each year. |
|
| Savings Calculator |
Use the flexible savings calculator to estimate the amount of interest you would earn given a level of monthly savings, with many optional settings. |
|
| UK Tax Calculator |
Check your tax and NI liability using this easy to use online tool. Outputs, Tax, Ni, Net pay and gross pay on an annual, monthly and weekly basis, also estimates your tax burden and the number of days a year you work for the tax man ! Plus lots of tax saving tips. |
|
|
 |
|
 |
|
Money
Forums Guides |
|
| Credit
Card Stoozing |
The
following guide explains the basics of credit
card stoozing in a step by step basis. |
|
| Discount
Vouchers |
Online
discount vouchers giving upto
50% off in stores such as Dixons,
Tesco, Avon, Currys, Boden and more. Many
of the vouchers are time limited - So check
back regularly |
|
| Money
Saving Guide |
Guide
to saving money on household bills & personal
finances - Start saving thousands of £'s
every year TODAY ! |
|
| Savings
Tree |
A
guide to Savings Accounts, from Cash ISA's to
Regular Savers to Premium Bonds, all explained
in an easy to understand manner. |
|
|
Users
Groups | Profile
| Messages
| FAQ | Sponsers
& Links | Member
list | Recommend this site | Top Money Saving Sitee
© 2004 - 2007 Moneyforums.co.uk / Market Oracle Ltd - Asserts copyright on all topics & posts made on this site. Moneyforums are open forums, and thus posts are NOT endorsed by Moneyforums.co.uk / Market Oracle Ltd . Any and all information provided within the Website is for general information purposes only and nor is or shall be deemed to constitute, financial or other advice. We recommend that independent professional advice is obtained before you purchase any product and/or service. All tools and guides are provided as is for general information purposes only.
|
 |
Website Designed and Mantained by Walsoft.net |
 |
| |
