BOE just increased the interest rate TO 50 basis points, and Bloomberg is painting a very bleak

[JohnSJ]

Last edited Thu Feb 3, 2022, 10:11 AM - Edit history (1)

picture of the upcoming jobs report, inflation, and the economy.

Interest rates went from .25% to .50%

[USALiberal]

1. Most provide a link to the story! Nt

[JohnSJ]

3. This is from Bloomberg's live broadcast that I am listening to this morning. I don't have a link

[nitpicker]

2. Link to BBC

https://www.bbc.com/news/business-60197463

[JohnSJ]

4. Thanks, I was watching the live broadcast on Bloomberg, and didn't have a link

[gab13by13]

5. They would not raise interest rates unless the economy was strong.

I dispute the premise of the article. They didn't have to raise interest rates, they could have left them at zero. Isn't the plan that raising interest rates will stem inflation, if not, why do it?

[JohnSJ]

8. Yes, it is because of rising inflation. The assumption that they wouldn't raise interest rates if

unless the economy was good is not necessarily true. Inflation is their prime concern, independent on how the economy is doing.

[Johnny2X2X]

10. But the economy is good

2021 produced the most jobs created in history, we had the best GDP growth in 40 years, and the UE rate fell to 3.7% which is near an all time low.

[muriel_volestrangler]

14. They weren't at zero, they were already at 0.25%. This has gone up to 0.5% (nt)

[ProfessorGAC]

6. No Technical Basis

Other than inflation.
UE3 is quite low, there will be net hiring in January, the real GDP is still showing growth. Only inflation is a true negative.
So, they're gloom is not rooted in data.
Sounds like Bloomberg has too many chicago school analysts.

[gab13by13]

7. Aha, Milton Friedman's Chicago School of Economics,

the goons who installed Pinocet's economy in Chile.

[lastlib]

9. And "supply-side" trickle-down/piss-on economics under reagan....

I CURSE Friedman and his Chicago mafia.

[yardwork]

11. It did what they intended - redistributed wealth to the very rich.

Friedman and his buddies were very, very racist. They believed that certain classes of white men (them) were superior and deserved to be in charge. It's all over his writings.

[ProfessorGAC]

20. I Met Friedman Once

Guy won a Nobel prize, but couldn't figure out how to change a tire.

[Beetwasher.]

19. Thanks Professor!

[yardwork]

12. Remember they gave an incentive to keep Republicans in control.

[muriel_volestrangler]

13. For those who don't think in "basis points", the rise was by 0.25%

so your "basis point" is 0.005%, for future reference. It seems a rather strange measurement.

[JohnSJ]

15. Actually Muriel, a 50 point basis point increase is .50% increase in interest rate, or a 1/2

point

50 basis points is equivalent to 0.5%, as 1 basis point is one hundredth of 1%, or 0.01%.

[muriel_volestrangler]

16. OK, so correct your headline, because the BBC article you have read says 0.25%

and nothing about "basis points" at all. Perhaps this is the problem with basis points - few people think in terms of them, so they often get them wrong.

[JohnSJ]

18. You are correct Muriel. The BBC was very clear, it was an INCREASE of 25 basis points to 50 basis

points, or from .25% to .50%

The Bloomberg broadcast did not make that clear

Thanks, I appreciate the correction

I have corrected the OP, and added what you have pointed out, the actual interest rate