There's nothing stealthy about it, we can all see it and all notice that money becoming worth less = stuff being more expensive...
It's about as stealthy as batman trying to get changed in his bat outfit on stage at glastonbury
IMF tells the UK to consider dropping interest rates!
- Thread starter Mercenary Keyboard Warrior
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There's nothing stealthy about it, we can all see it and all notice that money becoming worth less = stuff being more expensive...
It's about as stealthy as batman trying to get changed in his bat outfit on stage at glastonbury
Soldato
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It is stealthy because we don't really see it until we look back on it.
Crikey, what a **** analogy
I said short term rates. If BoE cut to .25 they will use open market operations to keep the overnight rate at .25 which in turn brings down the whole front end of the yield curve.
Pretty sure most people have the cognitive ability to see that planning to print more money makes less valuable and the stuff we use it on will then become more expensive...
That or as stealthy as a bomb, but I eating lunch which was more interesting that bad analogies...
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The reason for lowering interest rates is prevent housing market crash and foreclosures from rising, it is also to try and offset the euro debt crisis.
The same cognitive ability that just voted in Hollande in France.
French people did that, I not talking about French people....
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How is it going to do that?
Its negligable difference for anyone behind in payments, its the fact they are not paying over a significant period that will get them reposessed.
Mortgage borrowing is so incredibly low now that anyone struggling would not have been able to maintain it medium term anyway. The only people who should have any excuse at all about not being able to afford a mortgage right now are those who have been made unemployed.
People being repossessed has not gone up despite doom and gloom predictions.
This would only really benefit tracker mortgage customers which as far as I know are not a massive massive proportion of the market and are likely to decrease as they have been pushing the rates up. Most trackers arent that long a term, although some people did get some long term ones.
While they are cheap at the moment, as soon as the market picks up thousands will not be able to sustain it & be made homeless.
People should not be thinking "Can I afford this house" they should be thinking "can I afford to pay double what my current rate or higher" - wise people are waiting to see what happens before getting saddled with an overpriced house & the debt it entails (or just buying to let, but I don't believe buy to let is that ethical personally so won't do it).
Soldato
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On listening to the news, the IMF also suggested the VAT is reduced as well to help with growth.
David
David
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Totally.
Hence my point no one apart from those made redundant should be struggling and 0.25% less isnt going to fix the situation those guys are in.
I remember the days of double digit interest and I guess I gauge my spending against that as worst case.
Soldato
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We need less road use, not more.
Soldato
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Putting VAT up is the most intelligent thing the Government's done in a while.
Generally speaking people won't notice the price changes to much that the VAT change has made, but it'll bring in a sizeable chunk of revenue.
As for dropping interest rates further. What a load of balls... They're low enough as it is, dropping interest rates any more isn't going to stimulate the economy. It's supposed to discourage saving, and encourage borrowing, but nobody has any trust in the market to create such an outcome...
Also, inflation is FINALLY starting to fall again, so frankly the IMF can take it's policy recommendations elsewhere.
kd
The problem is at the moment the banks are already not passing on record low interest rates - if anything, unsecured loan rates and credit cards have gone up. Finance for small businesses is still incredibly difficult to obtain.
Dropping the rates even further won't do anything to change the above. Banks are shoring up their balance sheets and hoarding cash.
Dropping the rates even further won't do anything to change the above. Banks are shoring up their balance sheets and hoarding cash.
![[TW]Fox](/data/man-of-honor/2009.png){kind=avatar}
Fuel duty rises or reductions are not in themselves big enough to force people off or encourage people onto the roads, though. All it does is reduce or increase peoples disposable income left after they've paid the fuel bill.