Bank of England cuts interest rate

HEADRAT said:
The LIBOR rate hasn't changed, the Bank of England has lost all control of Interest Rates, they could drop it to 2% but if banks don't follow then it's meaningless.
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LIBOR rate only affects fixed rate mortgages, which if you already have one obviously isn't going to change, so it's only people trying to get a new fixed rate mortgage who aren't affected by the interest rate cut. People on most tracker, flexible and SVR mortgages (over 40% of the market I believe) have had the rate cut passed on straight away.
 
Slinwagh said:
It is all very well for the OcUK economists to deride the bail out plan but so far I don't think I have seen anyone come up with an alternative.

Something had to be done, whether what was done is correct I do not know and would never profess that I do know. I think it would be safe to say that that the whole situation was only going to snowball.
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No-one has offered an alternative simply because NO plan would work. This plan isn't going to work - just wait until the multi Trillion dollar derivitives market starts rearing it's head, it'll make the current crisis look like a picnic on a sunny afternoon.
 
Reminds me of the 1976 'Cod War' between the UK and Iceland when:

"Britain deployed a total of 22 frigates against the four Icelandic patrol vessels ... addition to the frigates, the United Kingdom also deployed a total seven supply ships, nine tug-boats, and three support ships to protect its fishing trawlers"

overkill!?!?

Anyway, back on topic.....s
 
Quit amusing that the Scots are suffering from devolution. English councils are being covered by the government, the scots are supposed to be covered by by their parliament. This is the first crisis for the devolved scots and guess what? England is being told that it's a uk thing.

Using anti-terror legislation is a stroke of genius. That this legislation covers so much, that is much morw worrying...
 
Scotland are really starting to annoy me now. England is already bankrolling Scotland, and anyone who disputes this needs to go and read up on the subject.

Perhaps Scotland should have kept that money instead of using it for perks such as free prescriptions etc etc
 
BBC said:
Local authorities have not been "reckless" in investing more than £840m with Icelandic banks that have now failed, the government has said.
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how stupid can you get! any one with half a financial brain cell was out of iceland 6 months ago!
 
Looks like I was right, CPI inflation has increased to 5.2%, thats a 0.5% increase in one month! RPI has also increased to 5% and RPIX to 5.5% It makes most high street banks savings accounts pointless. Heh the bank of england reduce interest rates by .5% and immediatley afterwards inflation increases by the same amount.
 
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Energize said:
Looks like I was right, CPI inflation has increased to 5.2%, thats a 0.5% increase in one month! RPI has also increased to 5% and RPIX to 5.5% It makes most high street banks savings accounts pointless. Heh the bank of england reduce interest rates by .5% and immediatley afterwards inflation increases by the same amount.
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Err, I don't think anyone ever said that inflation for September wouldn't go up. However the interest rate was changed in October, so stop giving the impression that last week's interest rate cut, in the second week in October, had anything to do with inflation figures for September.

Btw, now that fuel and food prices are falling, does that mean those who were recently saying we had real inflation of 10% will now accept we have real deflation? :p
 
Interesting points they were bringing up on bbc, most of this inflation was being driven by oil and utility prices. Oil prices are now on their way down, most of the increases by the utility companies have been passed on and food prices have levelled out and I think might even be on the way down. So I think we have hit the peak of inflation and I'm expecting some more rate cuts soon, much needed rate cuts to avoid the country falling into a deep recession.

Energize said:
Looks like I was right, CPI inflation has increased to 5.2%, thats a 0.5% increase in one month! RPI has also increased to 5% and RPIX to 5.5% It makes most high street banks savings accounts pointless. Heh the bank of england reduce interest rates by .5% and immediatley afterwards inflation increases by the same amount.
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Just about everyone who has the slightest clue of what is going on knew inflation was going up, Mervyn King himself said it was going up. Why does it make bank saving accounts pointless? If we were to stay at this kind of inflation rate over a year then maybe but everything is indicating that inflation is going to drop and drop pretty quickly. So a month or two at this high interest where effectively you aren't earning any interest on your money isn't really the end of the world.
 
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