Bank of England cuts interest rate

It does mean decreases in mortgage rates (eventually...) and lower earnings on savings so slightly less for the government to bail out I suppose.
 
Waste of time tbh.. Not exactly going to kick start the housing market and the economy, plus it’s detrimental to inflation. They should look at re-instating MIRAS and/or get rid of stamp duty completely to make a real difference.
 
US, UK, Canada, Sweden, Switzerland and Europe all cut rates. Hong Kong and Australia having cut previously.... trying to stimulate the markets and economy.

Markets bounced up strongly now...
 
They should have done this a couple of months ago, the sort of inflation we're seeing has nothing to do with the economy overheating, so interest rates are totally ineffective at tackling this inflation (duh). By delaying the BoE have guaranteed the recession lasting 6 months to a year longer.

Maybe time to kick out some of the hawks in the BoE committee and replace them with people like Prof. Blanchflower who have been calling for rate cuts for some time.
 
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Slinwagh said:
Will the banks pass the cuts onto mortgage holders though?
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Probably not right away for new fixed rate mortgages - they are funded from the wholesale markets which are clogged up. BoE tracker mortgages and people moving from fixed rates onto the standard variable rate should benefit however.
 
Who is this good for and who is this bad for?

I have lots of money in ISA's for example and looking to buy property, but don't own currently.
 
Booner! said:
Who is this good for and who is this bad for?

I have lots of money in ISA's for example and looking to buy property, but don't own currently.
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its good for debt, bad for profit.

i.e. you have debt, it costs you less to repay. a good thing.
you have money, it will earn less interest.

all balances out if you are balancing savings and a mortgage.
 
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