How much will BoE cut rates by today?

[swamp]

In the current situation, why shouldn't the banks be forced to pass the cut on? The cut is being made to encourage consumer confidence and spending, largely as a result of the mess made by the banking industry here and in the states - why then should the banks be the beneficiaries of the rate cut?

For a start the banks can't pass on cuts for fixed-rate mortgages.

Second, AFAIUI banks don't necessarily benefit from BOE rate cuts; they only pay less interest on certain government loans they may have.

[swamp]

What about people like me with £500K+ in savings accounts and no mortgage, credit card bills or loans?

How am I supposed to cope with 0% interest rates?

Buy shares.

[oracleslave]

What about people like me with £500K+ in savings accounts and no mortgage, credit card bills or loans?

How am I supposed to cope with 0% interest rates?

So The Millionaire DimPrawn TM is half the man he used to be? Oh Dear TM

[DimPrawn]

So The Millionaire DimPrawn TM is half the man he used to be? Oh Dear TM

Credit Crunched ™

[BrilloPad]

What about people like me with £500K+ in savings accounts and no mortgage, credit card bills or loans?

How am I supposed to cope with 0% interest rates?

Spend it

HTH

BP
PS Maybe you should write to Daily Mail help column?

[Bright Spark]

What about people like me with £500K+ in savings accounts and no mortgage, credit card bills or loans?

How am I supposed to cope with 0% interest rates?

BTL

[AlfredJPruffock]

What about people like me with £500K+ in savings accounts and no mortgage, credit card bills or loans?

How am I supposed to cope with 0% interest rates?

Spend it and damn well enjoy yourself - you cant take it with you Old Bean.

I welcome 0 per cent interest rates - one in the eye for all those living off Savings and Divis - you will all have to get off your derriere - earn some cash - or spend it.

Perfect.

[Bear]

Linky to the Halifax decision re it's 'collar'.

relevant to the post I made earlier

[BA to the Stars]

Just announced on radio that cut is 1%. Base rate now 2%

[Ravello]

For a start the banks can't pass on cuts for fixed-rate mortgages.

Second, AFAIUI banks don't necessarily benefit from BOE rate cuts; they only pay less interest on certain government loans they may have.

Fair point on the fixed rate mortgages and I wasn't suggesting that they should be forced to pass on the cuts in those products, in the same way that I wouldn't expect them to raise a fixed rate if the base rate went the other way. Where I feel they should be held accountable is passing on the cuts in their SVR.

I'd consider paying less interest on those government loans as a benefit. Additionally banks will make money where the interest they pay on deposits held is paid at Base Rate, making it effectively cheaper to borrow money from depositors like Dim Prawn.