it's nothing to do with hedging currency fluctuations rather large companies buy supplies months if not years in advance which is why price rises can seem a bit arbitary as they can be months after the event. The currency hedging normally occurs in a business who are very exposed to currency fluctuations which until Brexit will not have been the case with the vast majority of UK companies
Like Airlines? Would supplies depend on lead time... like say clothes from Bangladesh taking longer to arrive than tomatoes from Spain? Obviously I dunno anything about retail.
airlines are one which always hedge for currency fluctuations due to fuel always being priced in dollars , oh and the fact they use housands of gallons per day. huge companies like Tesco,s may hedge currency fluctuations but on a small scale considering their size the point with that sort of organisation there will be future orders already agreed (including price) plus warehouses full of goods. Just think the pound has been well done for months but only now is it starting to filter through to retail prices. Personally i think some inflation is good for the economy as it may force BoE to stop QE plus raise interest rates (which will also steady the £) which is needed just to restore some sanity to the markets plus and it is a HUGE plus give them some wriggle room when the next downturn occurs which it surely will.
i know i'm one of those fools not really that bothered for me and the missus as we are ok but i worry more for those who aren't savers as people who took out m ortgages 8 years ago have got use to historically low rates if they just rise to traditionally "low" rates a huge number of households will be in serious difficulty.
Yeah... I'm trying to do deposit, uni funds and ****e and it's like virtually paying the bank to keep the money for me. Deffo if interest rates go up some mortgages will feel the pinch but these rates can't go on.
Just to stabilise the markets nothing more. It drove money back to equities. May is out talking hard brexit to drive pound lower then telling Nissan they will have single market in private it seems. It's all just an agenda
They haven't got a ****ing clue what to do. Seems the only ones who thought they did (apart from Farago and Gove) were some markets that convinced themselves that hard Brexit and leaving the single market was economic madness and would therefore never happen. Well that illusion lasted until the Tory party conference and feeding time for the Bufton Tuftons.
Talk sport just had developers of FIFA 17 (I think) talking about how the upcoming release has got options for Scottish independence/ brexit built into the game. It was all complete bollox based purely on the fact that neither will happen before the 2018 release of the game , therefore there is no need to include them apart from all the free publicity it will get the game. So typical of a million and one "stories" where people are just using the whole devolution argument to suit their own agenda.
I hate when silly nationalism gets in the way of common sense and cooperation. It's silly nationalism behind most of the crazy movements: brexit, scoxit, Trump
I cant understand why anyone would want interest rates to go up... far more benefits to them being low than going up.
Lower interest rates can lead to currency devaluation and inflation over time. Not that either are altogether bad. As an example: a weak pound means I can buy Wensleydale cheaper.
Let's see, inflation comes down so things wont start costing more Cheaper housing because we won't have a million investors over borrowing to make on the capital gains My savings will earn more interest as it's currently **** High interest means GBP will get stronger so when i go on holiday it will be cheaper i'm on a fixed rate mortgage so my mortgage won't be more expensive
In all seriousness though, do you think having low interest rates is a good or bad thing? there is no wiggle room except for Negative interest rates and some of that was tongue in cheek. My fixed mortgage is over in like half a year. The interest rate is only exarcebating our housing crisis (at least in the south, i know you can buy a house up north with a chip butty and a packet of ***s) and people shouldn't think this interest rate is the norm. In fact i think it's highly irresponsible for people to borrow more than they can afford. Would teach them a lesson in my opinion
Interest rates go up, people with loans / mortgages suffer to pay them back. People trying to get a mortgage suffer because interest rates are higher they can't get as much money so struggle to put deposit down to get on property ladder. If people have got money to leave in bank to gain interest, they aren't in need of that extra money. Lower interest rates help those that need help more than higher interest rates help those savers that don't need the money.
BOTH. I think in general the more governments tinker with things like interest rate that wilder the boom and bust cycle. As a mortgage owner , with a fixed interest rate, and unlikely to be moving any time soon, I'd love a small period of rampant inflation in the US.
I really think they do know exactly what they are trying to do and it is all for the top 1%. they are delighted to drive the pound lower to aid exports or certain goods while still promising single market to anyone stupid enough to listen to them. they wat at best us style rights for people cos that allows them make more money and then suddenly whallop the NHS will be ended after a few years blaming the eu for not giving enough to them.
