Bank of England Interest Rate Decision August 2024 - My Take

The Bank of England now has inflation back at its 2% target but its policy remains very restrictive with Bank Rate at 5.25%. Markets expect a rate cut announcement at this Monetary Policy Committee (MPC) meeting. So will the Bank of England do as markets expect and go through with the first rate cut in this cycle? Hear our summary of what the MPC says and does and what it means for investors and homeowners in the UK.

What Else PensionCraft Offers:

00:00 Introduction and Overview of Bank of England's Decision
00:52 Details of the Rate Cut Decision
02:23 Inflation Forecasts and Economic Implications
04:21 Three Interpretations of Economic Data
11:05 Market Reactions and Currency Movements
13:00 Service Inflation and Sectoral Analysis
16:32 Public Sector Wage Rises and Their Impact
19:17 Mortgage Rates and Borrowing Costs
20:52 GDP and Inflation Forecasts
22:19 Unemployment and Future Rate Expectations
28:04 Summoning the Dog
28:22 Encouraging Viewer Interaction
28:36 Dog's Behavior and Preferences
29:09 Super Chat and Supporter Benefits
30:43 Mortgage Rate Calculations
33:56 Impact of Sterling's Strengthening
36:21 Bank of England's Inflation Forecast
37:30 Investment Advice: S&P and US Allocation
41:17 Gilt Prices and Interest Rate Cuts
47:21 Debt Management and Gilt Issuance
50:00 Conclusion and Upcoming Events

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DISCLAIMER
All information is given for educational purposes and is not financial advice. Ramin does not provide recommendations and is not responsible for investment actions taken by viewers. Figures that are quoted refer to the past and past performance is not a reliable indicator of future results.

[mccannger]

"Was there a [tipoff] text that came out of a Greggs?" Love it! 😀

[helixvonsmelix]

Microphone still very quiet, unless you're feeding Teddy, then frightened the crap outa me.

[ritalally]

As ever an excellent pod cast, thanks so much.

[geetpeetnsnsnjj]

Can you explain and breakdown the issue regarding the BoE holding have the issuance of govt bonds and selling bonds back into the market? Is there a ticking time bomb here?

[ThomasBoyd-sk]

Awesome. Did cut interest rates Bank of England yes Thomas.

[ttrjw]

Fairly clear interest rates now won't change for at least six months.

[royed]

Thought there would have been more of an uplift in REITs and Infrastructure today

[benjaques]

Central banks are often criticized for being behind the curve. Historically, they have frequently been too slow to act and react to changing economic conditions. When their credibility is at stake, their focus can shift to preserving their image rather than taking timely action. Despite their access to extensive data, charts, analysis, and the expertise of numerous PhDs, central banks often seem ineffective, relying on outdated strategies.

The impact of their decisions, such as interest rate changes, demonstrates this lag. While rate increases take time to influence the economy, rate cuts often have an even longer delay, meaning that by the time they take effect, the damage may already be done. This delayed response can exacerbate economic issues ratherrather than mitigate them.

[The_Summit_Wanderer]

Amazes me how a rate drop makes stocks drop despite lower borrowing rates etc

[beno]

Too slow to raise and too slow to drop now look at the mess they have created yet again. Central banksters.

[nbxrwcc]

Leeds social work gone in people money back out money

[CRAZYCRTC]

This is stupid…. The pound will fall and force imported goods up again..

[ixxkiqn]

Can you put these on the podcast ? Don't see much value from video here andimo format leads itself to audio more

[FreaksSpeaks]

Well done BofE, ster!ing to fall, inflation to go high, nice job. Atleast they have gold plated final salary pension.😂

[helixvonsmelix]

Rishi Sunak called an election because he was about to face a leadership challenge. 1922 committee gave him a way out.

[Paulmroberts]

Wonder why it is that nobody ever asks the bank whether they acknowledge that their high rates cause inflation in themselves. No journalist ever asks that question.
Rents follow mortgages.
If you rent to someone and your mortgage goes up, chances you pass that increase onto your tenants.
Inflationary!