Bank of England : Rate Drop!

0.5%. Chrimbo wasn't nearly as bad a bloodbath on the high street as some analysts predicted. The economy is still broken, badly, and if my own observations are anything to go by, the sales just put off the inevitable rather than avoided it, so expect the other 0.5% analysts had been predicting, soon.
 
A graph showing the Bank of England's base rate on the BBC headline at the moment really hits home what has happened to it..

Oh and I'm going for 0.5%.
 
there go my savings yet again, hoping for nothing would be pleased if it's only 0.25 but will probably be 0.5. :(
 
Agreed with further cuts being innefectual save to knacker the exchange rates further. I don't expect the vast majority of banks/building societies to pass on any more rate cuts either, so most of us probably won't see any significant difference to either mortgage or savings rates.
 
Berserker said:
Agreed, and I don't expect the vast majority of banks/building societies to pass on any more rate cuts, so most of us probably won't see any significant different to either mortgage or savings rates.
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I believe the NW said publically last week that they would not reduce their own rates further, regardless of what the BoE did.
 
I'm currently on my Building Socities standard variable rate which is 4.00%,my mortgage payment has falled by nearly £300 a month!
 
HEADRAT said:
I'm currently on my Building Socities standard variable rate which is 4.00%,my mortgage payment has falled by nearly £300 a month!
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I just got the figures through from my FA for the change on our mortgage thats due in april. £200 a month better off than I was on the fixed deal I signed 2 years ago.

Although I have a fair bit of savings I wasn't earning anywhere near £200 a month in interest.

I'm happy.
 
Interestingly, I have been following the issue of interest rates on another forum. The general consensus was that rates my reduce to 0.5 - 1%, but would then rise to as much as 10% within the following two years.

The suggestion was theat the Government would attempt to 'inflate away' the debt. A bad choice in my view.
 
Morba said:
eh?
you dont lose anything.
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I think it's fairly obvious that I mean the lost income, managing my savings has become a real ball ache in the last 6 months, I've got 10K comming out of a 6.8% fixed rate on the 28th and I'm not going to get anything like those kind of returns when I re-invest it. Fortunately a lot of my money was tied in for longer periods at good rates just before the poo really hit the fan.
 
a1ex2001 said:
I think it's fairly obvious that I mean the lost income, managing my savings has become a real ball ache in the last 6 months, I've got 10K comming out of a 6.8% fixed rate on the 28th and I'm not going to get anything like those kind of returns when I re-invest it. Fortunately a lot of my money was tied in for longer periods at good rates just before the poo really hit the fan.
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"there goes my savings"
thats not obvious that you mean the income from it.
 
The Mad Rapper said:
It is completely irrelevant what they drop by. Interest rates are now useless as a means of controlling the economy.
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Half agree.

They don't work when you want people to spend and you can't force people to spend money which is what the economy needs right now.

However, you can use it to stop people spending in the event of inflation which isn't the case right now but was during the late 80/early 90s.

You can't buy or force confidence.
 
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