tisha
What will the Monetary Policy Committee/Bank of England do to interest rates in December?
Bank of England announced it was cutting its rate by 1%, from 3% to 2%
"...the Bank of England slashed its own interest rates by 1 percentage point. That brings its key rate to 2 percent — the lowest since 1951 — as it, like the ECB, works to ward off a prolonged recession."
http://www.msnbc.msn.com/id/28048061/
Background:
British manufacturing is facing the toughest conditions for two decades as job losses accelerate, investment intentions collapse and domestic orders drop to their weakest level since 2001, the EEF industry organisation will warn today.
The EEF survey showed factory outputs plummeted in the last quarter and with orders, prices and margins all under growing pressure, the industry group is expecting redundancies of up to 90,000 next year.
The group is calling for the Bank to cut rates by a percentage point, after the Monetary Policy Committee's shock 1.5 point reduction last month. Every index tracked by the group's quarterly survey dropped through the floor in the three months since September.
Steve Radley, EEF chief economist, said: "We need to be pulling every lever we can, including fiscal stimulus, cutting interest rates and putting pressure on banks to improve lending to business."
Read the full The Independent article.
Settlement details:
As reported by a major mainstream news source.
Settled
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Interest rates rise |
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Interest rates remain steady |
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Interest rates cut by less than 1 perc. pt |
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Interest rate cut by 1-2 perc. pts |
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Interest rates cut by more than 2 perc. pts |
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Suspend date: Thu 4th Dec 2008 12:59am PST Settlement date: Thu 4th Dec 2008 7:20am PSTPrediction cut-off: Predictions on this question after Thu 4th Dec 2008 12:59am PST have been voided because they were made after the question could be settled
Initial likelihoods: Interest rates rise: 2%, Interest rates remain steady: 20%, Interest rates cut by less than 1 perc. pt: 20%, Interest rate cut by 1-2 perc. pts: 50%, Interest rates cut by more than 2 perc. pts: 8%
Action history:
keyeshoveden![[Power User]](http://www.hubdub.com/images/icon_superuser.gif "This user is a super user"){kind=icon}
: Rate cut of 1%. 
ewan1
: it been decided 1% 
richie_edinburgh
: http://www.guardian.co.uk/business/2008/dec/04/interestrates-interestrates 
bayoubear![[Admin]](http://www.hubdub.com/images/icon_admin.gif "This user is an admin"){kind=icon}
: Bank of England announced it was cutting its rate by 1%, from 3% to 2%
"...the Bank of England slashed its own interest rates by 1 percentage point. That brings its key rate to 2 percent — the lowest since 1951 — as it, like the ECB, works to ward off a prolonged recession."
http://www.msnbc.msn.com/id/28048061/
Suspend date: Thu 4th Dec 2008 12:59am PST Settlement date: Thu 4th Dec 2008 7:20am PSTPrediction cut-off: Predictions on this question after Thu 4th Dec 2008 12:59am PST have been voided because they were made after the question could be settled
more info...
Get widget!Predictions (101)
101 predictions
rogi
predicted Interest rate cut by 1-2 perc. pts (H$100 at 54%)
predicted Interest rates cut by less than 1 perc. pt (H$236 at 34%)
racketdad
predicted Interest rates cut by less than 1 perc. pt (H$50 at 33%)
curios
predicted Interest rates remain steady (H$50 at 2%)
bulog
predicted Interest rates rise (H$300 at 1%)
smackedd
nc_100
mysticmatt
harryhayfield
predicted Interest rate cut by 1-2 perc. pts (H$120 at 31%)
olbg
predicted Interest rates cut by less than 1 perc. pt (H$380 at 63%)Comments (2)
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Economists are divided over how big the MPC's cut will be on Thursday, with a slim majority in a Reuters poll expecting a half-point reduction and financial markets pricing in another one-point fall.
http://www.independent.co.uk/news/business/news/pressure-grows-for-big-cut-in-interest-rates-1042762.html
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