Pound in biggest monthly fall against the dollar since 2016...

[Bosswhite]

Wow. Rural areas also have poorer people. Oil was cheaper than bottled gas. Some use that too so I wonder how they will get on.

Fuel prices have decreased for cars etc but of late diesel is usually ~20p/L dearer.

It is difficult to understand these prices when that is the only choice , a little while ago Six Oil Tanker ships were at anchor in Weymouth Harbour waiting for oil prices to rise as it was not cost affective to off load their cargo .

 

[ellal]

Indeed:
Lower £ means our exports get cheaper while imports get more expensive.
So our exports improve while the incentive to import stuff reduces as they get more and more expensive.
This overall is often better for our economy - at the expense of other economies.
This is why countries go for "competitive devaluations" and why other countries are furious when the country in question does it.
This is also why the BofE was in the recent past not raising interest rates and talking about transitory inflation and the rest. In short they were trying to keep the £ down by talking it down

All well and good, but what happens when your main export market is tied up in red tape of your own making?

And the UK is far more reliant on imports than most other western countries...

Could you tell us how the vast majority of people are benefiting from the massive increase in prices for the basics?

 

[ellal]

"Pound falls following Bank's announcement"

"The pound fell 0.7% against the US dollar following the Bank of England's announcement."

One would have thought that a rate rise would stimulate a currency upwards...

So it appears that the only weapon available (interest rate rises) has failed.
Probably due to the fact that the UK is now seen as a minor bit player in the world since brexit!

"The Bank also forecasts that the UK economy is already in recession"

No sh*t sherlock...

But this time there is only one way out...

However the clueless are still clinging to the brexitanic!

 

[ajohn]

One would have thought that a rate rise would stimulate a currency upwards...

The FED it seems can be over 3%. That is one aspect that has pushed the USD up. They are expected to get near 5% eventually.

The money market may feel ours isn't high enough or don't like the sound of intended actions. Or of course our particular situation.

So our rates are up to ??? I didn't catch the number. Look forward to a stamp duty reduction on Friday. House price crash worries maybe? TBH I am somewhat inclined to feel we need one.

 

[ellal]

The FED it seems can be over 3%. That is one aspect that has pushed the USD up. They are expected to get near 5% eventually.

The money market may feel ours isn't high enough or don't like the sound of intended actions. Or of course our particular situation.

So our rates are up to ??? I didn't catch the number. Look forward to a stamp duty reduction on Friday. House price crash worries maybe? TBH I am somewhat inclined to feel we need one.

2.25%

The thing is the rate could go up as high as 'black wednesday'...

But as history tells us it would make no difference given the current underlying cause of the UK's fragile economy!

Edit: Whilst a house price crash would be welcome for some (the rich with cash to spare) it is the only nominal 'asset' that the UK has...

Take that away and it'll be third world poverty for the majority of the population...

That's why the nasty party have since '79 kept coming up with artificial means to keep prices high and keep their funders happy!

 

[motorbiking]

It is difficult to understand these prices when that is the only choice , a little while ago Six Oil Tanker ships were at anchor in Weymouth Harbour waiting for oil prices to rise as it was not cost affective to off load their cargo .

That is very common. It’s a common sight off east iow

 

[Mottie]

Probably due to the fact that the UK is now seen as a minor bit player in the world since brexit!

You wish.

Edit: Whilst a house price crash would be welcome for some (the rich with cash to spare) it is the only nominal 'asset' that the UK has...

Take that away and it'll be third world poverty for the majority of the population...

You hope.

 

[ajohn]

But as history tells us it would make no difference given the current underlying cause of the UK's fragile economy!

The USA is somewhat of an importing country. An increased USD helps. It would be interesting to see what happened to the GBP in Mrs T dizzying interest rate period. There is need to know what was happening in other currency areas at the same time. We just kept up our payments and never reduced them from their peak.

 

[ellal]

You wish.

You hope.

Nope on both counts...

Just the inevitability that thick as sh*t brexiteers such as yourself refuse to admit to!

I do hope that you'll be honest with your grand kids as you bounce them on your knee, and then tell them that you sold them into financial slavery on the whim of an old man's xenophobic pipe dream!

 

[fillyboy]

But this time there is only one way out...

However the clueless are still clinging to the brexitanic!

So, you think the only way UK can escape a recession, is to re-join a group of counties who are also heading into a recession.

 

[transam]

Do tell us...

Is there a diynot troll school?

Because so many of you pop up spouting the same boring old b*llshit it can't be by coincidence

How quickly can you pass around that single brain cell, and what do you do when you are not in possession of it?

Oh silly me, I forgot...

You must then resume mod duties

Well you would know all about brain cells

Let’s face it you are lucky that evolution did not require you to think to breath

As for my other remarks tis a fact you came in here with yer resignation / I am off mince

Blimey that all changed rapidly what was it

Health insurance costs ?? Or ??
Some other reason ?

Vaccination issues ???

 

[ajohn]

So, you think the only way UK can escape a recession, is to re-join a group of counties who are also heading into a recession.

Even the US is but Biden makes noises suggesting that as far as fuel goes he can do something about it but the companies need to comply. His comments could just be to shift blame anyway.

These companies are making plenty of money so they invest to produce more - the price falls. Against that they could export when the exceed what the US needs. Good for the USA but not so good for other producers. Price falls again.

UK - EU recession. The more interesting aspect is who finishes off worse and who solves the problems first as well. The latest forecasts on out base rate increases is to 4%. It was 3%. The change being down to Truss's fiscal easing and more borrowing.It could go higher.

The other aspect can be how the money market views a currency.

C4 is at it again. Bound to get sold. Pointing out that the announcements tomorrow wont be called a budget as the OBR haven't been involved at all. It seems the info needed has been available for a while. The BofE have to consider the effect in Nov, next time they meet.

Business energy costs currently. Ours is the highest compared with France and Germany. France's is remarkably low. That appears to be as of now.

Another interesting number. The maternity end of the NHS is expecting to pay out £8b for co ck ups. Over 4 times the cost of their entire staffing.

 

[Notch7]

Lower £ means our exports get cheaper while imports get more expensive.
So our exports improve while the incentive to import stuff reduces as they get more and more expensive.
This overall is often better for our economy - at the expense of other economies

It’s a common argument made, but it’s actually untrue.

The UK doesn’t make stuff from scratch, it imports raw materials and components.

 

[Notch7]

A weaker exchange rate is not necessarily a bad thing for a country

It’s a pretty good indicator of a shagged economy.

 

[Notch7]

So, you think the only way UK can escape a recession, is to re-join a group of counties who are also heading into a recession.

Yes.

40% of UK exports go to EU, Brexit massively increased trade barriers making UK less competitive.

and Trusses hogwash about lowering corporation tax to create growth…..wont work. Businesses aren’t coming to UK because we have a skills gap, we have a shortage of workers and we don’t have access to a frictionless market anymore because some muppets voted to stop it.