£65bn intervention!!!!!!!!!!!! Gilt bond yields significantly dictate the rate at which the Government can borrow money. The impact of the budget had a monumental effect on that and therefore on the public finances. It's not about individuals owning the bonds. That's before you even get into the impact on UK pensions....
As of Monday, they'd only spent 3.7bn and are forecasting that they won't have to spend anywhere near £65bn https://www.ft.com/content/ce3becd7-4098-45cc-afd5-ba145eda856a
That would be great news!! What are they forecasting they'll have to spend? It's by the by to the point we're discussing though. They've announced a £65bn intervention package and it was that that initially calmed the markets and saw the pound recovering. The subsequent climb down on the 45p rate cut seems to have helped further.
I'm not sure what they think they'll spend. It was on the radio this morning but I didn't catch it all. I just did a quick Google search and got the FT article and that doesn't say.
Fingers crossed for that then. Obviously the less they have to commit the better, I'm sure we all agree on that.
How much does that affect you as an individual? I'll tell you how much it's affected me, on what's not a gigantic salary - not at all. Pensions - had an interesting conversation with my Boss' boss yesterday where he said he'd lost 70k in pension over COVID but it had recovered to what it would have been without COVID before the mini budget. So it seems like a matter of timing rather than a permanent loss. ****e if you must take it this week like.
It affects every one of us as individuals. It affects the rate of interest we as a nation are paying on our borrowing, the more that is the less there is for everything else - public services, tax cuts, investment projects aimed to get the economy growing...
The Federal Reserve raised their rates faster than other central banks around the world which immediately made the American market attractive to investors and the reason why all major currencies tanked against it.
Yes. I see they only bought 22 million pounds worth on Monday and have in total spent 3.66bn of the 20bn they could have spent so far.....
Why quote figures then? Everything you have typed after the word "Yes" indicates the opposite, that you don't understand why the BoE bailed the government out with £65b as opposed to £5b?
They committed to buying 5bn per day if necessary. Turns out it wasn't, and it hasn't been since, so it won't be anywhere near 65bn. That's the figure everyone keeps screaming though...
"Mummy, hello, did you see how I wrestled the banner from that beastly Anti-Growth protester?" "Yes darling we were so proud, Daddy said a Hurrah! ... ... when you're back home you can have a go on Mummy's tittie, well done .... well done indeed."
****ing ridiculous wasn't it. I loved it when they had a spare one and kept going. Look at me Liz, look at me Liz.....I tore the banner down, im on your side, honest......
