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Originally Posted by nomadking
Why would sales in JUNE be affected by the referendum towards the end of that month?
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I didn't say the referendum affected them. You wanted proof the economy was getting weaker and data justified action by the BoE.
Quote:
Originally Posted by nomadking
Interest rates dropped in part because the PREVIOUS drop in the Pound and that was from the self-fulfilling prophecy of the scare mongers.
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The usual response to a weakening currency is to raise interest rates to promote capital inflow. Massively simplifying the higher the interest rates the better the returns people can get.
The level of denial required to blame all negative impacts of the referendum result on 'scare mongers' is astounding. Companies and the BoE aren't campaigning anymore, and there is no 'Project Fear' now, it's Project Reality. The Bank of England are both accepting that it's bad and wanting to make a success of it, as I think all sane people are.
You are apparently proud you voted the way you did so own the consequences, both good and bad. That way if the economy takes off after the rough period you can congratulate yourself without being a disingenuous hypocrite.
Should it all end up going right I will be delighted to have been wrong for having been down on the result.
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Growth in 2017 is now forecast at just 0.8pc, down from a previous forecast of 2.3pc in May. Bank staff calculated that the Brexit vote had “conservatively” knocked 2.5 percentage points off growth over the next three years, even after accounting for the stimulus measures it announced.
The National Institute of Economic and Social Research policies calculated that the Bank’s policy measures could stimulate the economy by as much as 0.5pc over the next two years. However, the Resolution Foundation said the impact of the weaker pound on inflation was likely to hit average real earnings by £615 in 2018 compared with a vote to remain in the EU.
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