Lira getting Stronger - Why?

[JohnF]

Just shows the post Brexit reduction wasn’t needed. We are back where we were before the vote. Carney is a fool!

Have you come off your medication, Stoop?

His maths is obviously as good as most "brexiteers", i.e. seriously flawed.

JF

[Scunner]

Why would a UK interest rate rise cause it to weaken against other currencies? Surely it should be the other way round.

The more I see the less I understand.

[Colwyn]

Quite. This is why is ain't a great idea to bet on exchange rates unless you have insider knowledge*. Here is a stab at an answer. All the money markets had already decided that a rate rise was coming and had taken that into account over the last few days so the £ was already pushed up. Therefore when it happened it didn't provide a fresh boost to the pound. That's what I expected to happen. But the £ actually went down suggesting that the money markets wanted better than 0.25%. Or perhaps a strong statement of further rises to come.

* Except for my brother who bet on the Brexit vote going wrong so bought a big heap of Euros before the vote when the pound still had a good value and so has a stock put aside for his next few year's holiday. Smart arse!

[stoop]

The UK interest rate dropped 0.25% last August. It’s just gone up 0.25%.

By my maths that’s back where we started.

[Scunner]

Well it means we are back to where we were last August, I think interest rates started before then 

[stoop]

Just shows the post Brexit reduction wasn’t needed. We are back where we were before the vote. Carney is a fool!

Have you come off your medication, Stoop?

His maths is obviously as good as most "brexiteers", i.e. seriously flawed.

JF

You can apologise any time you feel like it. No rush  

[stoop]

Well it means we are back to where we were last August, I think interest rates started before then 

You know what I meant!

Anyway it was 2009 when it went to 0.5% so yes you are correct - it started well before last August   

[Colwyn]

Before the referendum the pound was worth 1.3€ and now it worth 1.12€ (down 14%). Inflation was 0.3% and is now 3% (10x higher). I suppose we should be grateful it is not a lot worse. Perhaps it would be without cautious BoE policy. Still David Davis has promised we will have trade deals with most of the rest of the world by July 2018 so everything will be fine by next summer.

[stoop]

Before the referendum the pound was worth 1.3€ and now it worth 1.12€ (down 14%). Inflation was 0.3% and is now 3% (10x higher). I suppose we should be grateful it is not a lot worse. Perhaps it would be without cautious BoE policy. Still David Davis has promised we will have trade deals with most of the rest of the world by July 2018 so everything will be fine by next summer.

Cautious? Did you ever read Carney’s report on what the Brexit vote was going to do to the economy? That’s the vote - not actually Brexit!

He’s a numpty who should go back where he came from.

Anyway I’ll get a decent pension rise next Feb for once   

[Colwyn]

The ₺ remains weak, losing out to $, € and £ with the pound going back over 5 again. It seems this is partially fed by increasing inflation: figures announced today show a rate of 11.9% - the highest since October 2008.

Ah Stoop, I see you are following instructions from Brexit High Command to pile blame on Carney. I heard Norman Lamont saying exactly the same yesterday. Well he certainly knows about interest rate rises having given us two in one day on Black Wednesday! And costing Britain £3.3billion in just a few hours, for no benefit at all. At today's prices that would be £7 billion - i.e. the net cost of an entire year's membership of the EU.