I1L2T3 Posted January 22, 2014 Share Posted January 22, 2014 interest rates won't need to rise for as long as CPI inflation is on or around the bank's target of 2% and wage inflation is lower falling unemployment is generally a trigger for increased wage rises, but it's unlikely this will happen in any significant way for a good few months yet and an increase in interest rates may adversely affect the housing market in addition they will have concerns that any rate rise will increase the value of the £ - which is always a double edged sword and i think they would be reluctant to see the value of the £ increase too much they may consider a small increase towards the end of the year to give an indication to the money markets that they are keeping a tight hold on things but i wouldn't expect anything earth shattering unless inflation and wage rises take off Indeed, interest rates will not rise significantly because it would risk killing a boom based on rapidly rising house prices. We have to wait to see what inflation does next. ---------- Post added 22-01-2014 at 18:57 ---------- You haven't read what Mark Carney said then - unemployment at <7% is a precondition for a rate rise, not a trigger. Indeed. It is one of several variables that need to be considered. Link to comment Share on other sites More sharing options...
Anna B Posted January 22, 2014 Share Posted January 22, 2014 The most recent figures revealed that 941,000 people aged between 16 to 24 are out of work, while 282,000 under 25s have been jobless for a year or more, the highest level since 1993. Employment minister, Esther McVey, says young jobseekers need reminding that they have to start at the bottom and work their way up, but their expectations are too high. Last year more than 1,700 people applied for 8 jobs at a new Costa coffee shop in Notingham. Link to comment Share on other sites More sharing options...
ivanava Posted January 22, 2014 Share Posted January 22, 2014 The most recent figures revealed that 941,000 people aged between 16 to 24 are out of work, while 282,000 under 25s have been jobless for a year or more, the highest level since 1993. Employment minister, Esther McVey, says young jobseekers need reminding that they have to start at the bottom and work their way up, but their expectations are too high. Last year more than 1,700 people applied for 8 jobs at a new Costa coffee shop in Notingham. These expectations are drilled into them at school. Link to comment Share on other sites More sharing options...
Anna B Posted January 22, 2014 Share Posted January 22, 2014 These expectations are drilled into them at school. What should teachers do then? Tell them to work hard and inspire them to reach for the stars, or tell them that they'll probably end up in Macdonalds - if they're lucky? Link to comment Share on other sites More sharing options...
ivanava Posted January 22, 2014 Share Posted January 22, 2014 What should teachers do then? Tell them to work hard and inspire them to reach for the stars, or tell them that they'll probably end up in Macdonalds - if they're lucky? They should be realistic, there is little point in telling a child that they should aspire to be a physicist, if the child doesn't have the cognitive abilities to achieve it. The country needs workers at all educational levels, we don't just need graduates. Link to comment Share on other sites More sharing options...
El Cid Posted January 22, 2014 Share Posted January 22, 2014 1. Good news for savers, eh, what a pittance of pennies that banks have the cheek to give us in interest rates. Bread and circuses come to mind. We have an unbalanced, abnormal economy at the moment, we need interests to rise to normal levels. These ultra low interest rate levels benefit the banks. I thought this Canadian Governor wa meant to be the best man for the job, but he seem to be very political. Link to comment Share on other sites More sharing options...
I1L2T3 Posted January 23, 2014 Share Posted January 23, 2014 We have an unbalanced, abnormal economy at the moment, we need interests to rise to normal levels. These ultra low interest rate levels benefit the banks. I thought this Canadian Governor wa meant to be the best man for the job, but he seem to be very political. At the very least he has shown that his economic forecasting is every bit as bad as that of every chancellor since 1997. Link to comment Share on other sites More sharing options...
Mecky Posted January 23, 2014 Share Posted January 23, 2014 At the very least he has shown that his economic forecasting is every bit as bad as that of every chancellor since 1997. and before that too. I find it suspicious that the economy always appears to improve just before a General Election. I remember watching a TV programme too where the presenter said recessions generally hit at the end of the decade. How much weight can be put on these arguments I'm not sure, but I am sure governments and political parties use stats from iffy data collected and applied by quangos/watchdogs to try and persuade public opinion and it generally doesn't fit what I personally witness and experience. Link to comment Share on other sites More sharing options...
Vague_Boy Posted January 23, 2014 Share Posted January 23, 2014 Well shut up then A witty rebuttal worthy of the great historical exchanges between men of letters. Truly you are this site's premier mass debater. they also know I provided the evidence Evidence you seem strangely reluctant to offer here. I wonder how this all fits in with the news that 25% of yound adults are still living at home? Much of that is down to high house prices, caused during the boom of 1999-2007. Now who was in change back then? I know, let's ask Gordon "I will not let house prices get out of control" Brown. Do you see what I did there Mecky? I made a statement and provided a link to back it up. Here's another one: Full text of 1997 Budget statement A quick Google brought up growth forecasts halving in March but I think they were just forecasts and have since been overtaken by events. This is indeed what Mecky is referring to. Apparently a halving of growth forecasts is the same as a halving of the entire economy. Who knew? No but it shows the deficit increasing from 15 billion to 156 billion between 1997 and 2009.... During a period of so-called "record growth" as well. I wonder how it's possible to rack up such huge spending deficits during a period of apparent affluence and growth. Surely you would need a cretin of monumental fiscal ineptitude running the treasury? Step forward Crash Gordon. Crash! Ah ah! He's doomed every one of us Screwed every one of us He smite with a mighty hand Every man, every woman Every child, with a mighty Crash! Link to comment Share on other sites More sharing options...
Cyclone Posted January 23, 2014 Share Posted January 23, 2014 1. Good news for savers, eh, what a pittance of pennies that banks have the cheek to give us in interest rates. Bread and circuses come to mind. That's why interest rates going back up would be a good thing for many people. 2. 170,000 is a drop in the ocean, compared to 1 million of our youth out of work. Shops needed youth at Xmas time for free slave labour. It's approaching 20% of that 1 million. It's not a pittance, it's a 5th. 3. Good news would be ending the plans for HS2 and using the money for a nationwide house building scheme where the youth can also gain an apprenticeship in the building trade for 3 years. No, that would be terrible news, we investment in our transport network. I'm not convinced that the government has any business building houses. Link to comment Share on other sites More sharing options...
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