Anuncio

Colapsar
No hay anuncio todavía.

Why is the pound in a state of collapse ?

Colapsar
X
 
  • Filtrar
  • Tiempo
  • Mostrar
Limpiar Todo
nuevos mensajes

  • Looks like I may have been a bit too quick to celebrate John with the rate now dropping back down to 1.108 from a high of 1.1239. Still its better than 1.022 from the other week. Sitting tight till the 15th.

    Comentario


    • The Pound is to be referred to in future as "The Ten-Bob"
      The rate of exchange will be 1€ = 3Ten-Bobs apart from the Matabele Gumbo Bean where the rate remains @ 2.4 to the "Ten-Bob"
      DON´T BE ALARMED
      This will not affect the "Ten-Bob" in your pocket.
      But just you take it out to try and spend it......................!!!

      Comentario


      • This received today. Might be some good news for us drawing incomes in pounds:

        The Pound makes gains against the majors as the Bank of England cut interest rates by another 50 basis points

        Posted: 09 Jan 2009 02:45 AM CST

        The Pound continued its upside momentum against the majors, rising to a fresh three week high of 1.1239 versus the Euro, while the UK currency also extended recent gains made against the Dollar after the Bank of England cut its benchmark lending rate to a record low at 1.5% in an attempt to limit the fallout from the worsening recession.

        The Monetary Policy Committee, led by the governor Mervyn King, lowered interest rates by 50 basis points, in line with initial expectations, as the Central Bank cut borrowing costs for the fourth time since the global coordinated emergency reductions on October 8th.

        In the accompanying statement, the MPC highlighted that “the availability of credit to both households and business has tightened further, pointing to the need for further measures to increase the flow of lending to the non-financial sector, while output is likely to continue to fall sharply during the first part of the year.

        The reduction in UK interest rates will limit the Bank of England’s scope to keeping fighting the recession through monetary easing and that may encourage the government to introduce a second stimulus package and inject more money into the banking system through a measure known as quantitative easing.

        The Pound rallied strongly against all of the 16 most actively traded currencies as the extent of the reduction not only matched economists’ forecasts but prompted speculation that the Bank of England are nearing the end of its rate cutting cycle and have done what is necessary in order to revive growth.

        A 50 basis point reduction is less than hoped by traders and the decision may lead to a sustained period of Sterling strength on interest rate differentials, but in the longer term the Pound may come under further selling pressure and Euro and Dollar buyers may wish to consider placing a stop order to protect against an adverse move.

        In the aftermath of the decision, the Pound strengthened as much as 1.8% to a high of $1.5373 versus the Dollar despite rates being cut to the lowest level since the Bank of England’s foundation in 1694 and the UK currency may weaken further over the coming months amid suggestions that rates will be cut to 0.5%.

        The UK economy entered its first recession since 1991 last year as the global economy reeled from the worst financial crisis since the Great Depression and the further deterioration in UK economic data has seen traders raise bets that policy makers will cut rates by another 75 basis points by the end of the first quarter.

        However, the Nationwide Building Society have already stated that they won’t be passing on any further reductions in rates to the consumer and the government will have to implement less conventional techniques to provide further monetary stimulus.

        In an interview with the Financial Times, the Chancellor of the Exchequer Alistair Darling signaled that the Treasury may need to play a bigger role in setting monetary policy if interest rates approach zero per cent and restrain the Bank of England’s influence.

        The Euro continued to decline against the Pound yesterday but managed to stem the flow of losses versus the Dollar despite reports that European consumer and business confidence fell to the lowest level on record and unemployment rose to the highest in two years.

        An index of business and consumer sentiment slumped to a reading of 67.1 in December from 74.9 the previous month and that represents the worst performance since the EC released its index in 1985, while separate reports showed that the jobless rate rose to 7.8% as companies shed jobs and reduce corporate investment.

        The European economy has entered its first recession since the introduction of the Euro in 1999 and a combined rate cut of 1.75% percentage point since early October and billions of Euros in fiscal stimulus measures have thus far failed to reverse the slide in confidence.

        The deterioration in European economic data means that the ECB will be forced into cutting interest rates by at least another 25 basis points next week and the Euro has declined amid speculation of a further aggressive easing in rates over the coming months.

        The Dollar declined against the Pound and the Euro yesterday as we build up to the U.S employment report this afternoon and the market is anticipating another substantial drop in payrolls to record a cumulative decline of 1.7 million jobs lost in the last four months.

        The increase in risk aversion has done little to boost Dollar sentiment as the U.S currency also fell another 1.7% versus the Japanese Yen as the report this afternoon is expected to confirm that the unemployment rate rose in December to the highest level in 16-years.

        Comentario


        • [QUOTE=John50;22710]This received today. Might be some good news for us drawing incomes in pounds:

          However, the Nationwide Building Society have already stated that they won’t be passing on any further reductions in rates to the consumer and the government will have to implement less conventional techniques to provide further monetary stimulus.


          If you look on the Nationwide site today there is the following message:-

          ""Bank of England Base Rate decreased

          The Bank of England's Monetary Policy Committee announced a 0.50% decrease in the Base Rate to 1.50% on 8 January 2009.

          Our flexible mortgage - the Base Mortgage Rate (BMR) will decrease by the full cut of 0.50%, from 4.00% to 3.50% from 1 February 2009. Our BMR is guaranteed to be no more than 2% above Base Rate and continues to be the lowest standard variable rate of all major high street lenders.

          For tracker mortgages reserved before 6 November 2008, we will be applying a 2% floor* as a temporary concession. This means that the interest rate on these mortgages will not change until the base rate rises back above 2%**. This new, temporary floor of 2% is advantageous to our existing tracker customers, as it is 0.75% lower than the original 2.75% floor stated in customers' mortgage offers.

          Tracker mortgages reserved since 1 December 2008 have a floor* of 1%, therefore these customers will receive the full cut of 0.50% to their tracker interest rate from 1 February 2009.

          We will announce full details of our savings rates in due course.

          *A floor is a lower limit stated in tracker mortgage conditions, which means that if the Bank of England base rate falls to or goes lower than the rate of the tracker ‘floor' the rate the customer pays will remain at the floor rate, plus or minus the differential (the set percentage difference from base rate) of the tracker product, until the base rate rises back above this.

          **For example, if the differential of the tracker mortgage is +0.89%, and the base rate is 2%, the mortgage rate will be 2.89%. If the base rate falls to 1%, the floor will apply and the mortgage rate will continue to be 2.89%. If the base rate increases to 2.25%, the new mortgage rate will be 3.14%.""

          Unless I am reading this wrongly it would seem they are passing on cuts and their savings rates are still going to decrease. So much for the newspaper articles saying how good Nationwide are to their savers!!!

          What a load of c..p. I have an e-save account with them which is already at 1.95%. Problem is now that living out here we are stuck with Nationwide's savings as we cannot open any other UK savings account.

          Comentario


          • I'm afraid you can't have it both ways. If mortgage rates come down, savings rates have to reduce as well. Eventually, they will have so little income from savers, they will not have any available to lend to borrowers. It's a vicious circle. I too am a Nationwide customer in the UK. I don't have a mortgage, but I do have savings, so it's loose, loose, loose all the way for me. I was hoping that the press reports were correct, and that they would put a hold on mortgage and savings rates, so that our income would stabilise. Remember it's not only you folks in Spain who are suffering due to exchange rates, in the UK some of us are suffering because of interest rates.

            Brian

            Comentario


            • Originalmente publicado por dorsetlad Ver Mensaje
              I'm afraid you can't have it both ways. If mortgage rates come down, savings rates have to reduce as well. Eventually, they will have so little income from savers, they will not have any available to lend to borrowers. It's a vicious circle. I too am a Nationwide customer in the UK. I don't have a mortgage, but I do have savings, so it's loose, loose, loose all the way for me. I was hoping that the press reports were correct, and that they would put a hold on mortgage and savings rates, so that our income would stabilise. Remember it's not only you folks in Spain who are suffering due to exchange rates, in the UK some of us are suffering because of interest rates.

              Brian
              We're not just suffering from exchange rates. A lot of us have our savings or investments in the UK so we too are suffering from much lower rates.

              My point was that Nationwide do not appear to have kept to their word. We will see whether they announce more reductions in their savings rates soon. We were getting 12%pa on our investment when we got here now its down to 3.6% and dropping and we dont have our pensions yet either.

              Comentario


              • Here we go again!
                This time it looks as if there's no way back.
                To get the pound back we need a revolution - or at least change of government, preferably to a National Govt.
                Fingers xed.

                Comentario


                • What chance do we stand when people put headlines in the paper yesterday "sterling is finished" and saying to investors etc if you have any sterling - dump it!!!

                  Comentario

                  Trabajando...
                  X