Grim news

[gingerjedi]

I care because I get fook all interest on my savings account and inflation is rampart, whilst at the same time people who got in debt that they could not manage enjoy lowest payments they could never wished for. How is that fair?

The economy is practically flatlining and you want rates up? Do you honestly believe that home owners and business are living it up at the moment?

Anyway as I said you don't believe in borrowing money so why should you take advantage of usury?

[DimPrawn]

I rarely use word "fair", in this context a better word would have been "smart" - current policy isn't smart, very cynical and ultimately will cost more than quick crash of real estate market that should have happened in 2009, we'd be in proper recovery by now.

Fight back AtW. Don't put money into savings, not in sterling in British banks anyway.

One option is to buy a house to live in instead. Make the most of the cheap money subsidised by other peoples hard work and savings. No more rent to pay! and any further income can be used to pay down the debt whilst inflation is high and interest rates are low.

That way, in 10 years time, when you've paid off your mortgage with overpayments, and interest rates are 15%, you'll be laughing with all your income going into savings that do pay!

Nothings fair, you just have to play the game to your best advantage, and if you have enough for a good sized deposit, get the cheapest mortgage deal you can and then you a laughing like SB etc.

HTH BIDI

[AtW]

The economy is practically flatlining and you want rates up?

Job of BoE is to keep inflation in check, they've got rates mechanism to do that and they are clearly failing in this job.

Those rates don't keep economy running anyway, they are practically ZERO, yet economy takes little notice - I agree that it would have been good idea to keep them at reasonable rates 5-6% to avoid bankrupting those who counted on this average rates, however cutting it to zero is criminal because it artificially props up real estate market without good reason: what's the point to get new buyers in who can only afford to pay for house if rates stay at 0.5%? This is the new time bomb that BoE is installing with such low rates, keep them at previous level to keep inflation in check and deflate real estate to reasonable level when someone on average salary of £25k can afford to buy a house with x3 loan.

[AtW]

Fight back AtW. Don't put money into savings, not in sterling in British banks anyway.

One option is to buy a house to live in instead. Make the most of the cheap money subsidised by other peoples hard work and savings. No more rent to pay! and any further income can be used to pay down the debt whilst inflation is high and interest rates are low.

That way, in 10 years time, when you've paid off your mortgage with overpayments, and interest rates are 15%, you'll be laughing with all your income going into savings that do pay!

Nothings fair, you just have to play the game to your best advantage, and if you have enough for a good sized deposit, get the cheapest mortgage deal you can and then you a laughing like SB etc.

HTH BIDI

I walk a different path

HTH

Nemo

[shaunbhoy]

I walk a different path

HTH

Nemo

You ain't joking!!!

[gingerjedi]

Job of BoE is to keep inflation in check, they've got rates mechanism to do that and they are clearly failing in this job.

Those rates don't keep economy running anyway, they are practically ZERO, yet economy takes little notice - I agree that it would have been good idea to keep them at reasonable rates 5-6% to avoid bankrupting those who counted on this average rates, however cutting it to zero is criminal because it artificially props up real estate market without good reason: what's the point to get new buyers in who can only afford to pay for house if rates stay at 0.5%? This is the new time bomb that BoE is installing with such low rates, keep them at previous level to keep inflation in check and deflate real estate to reasonable level when someone on average salary of £25k can afford to buy a house with x3 loan.

Why don't you right a letter to the BoE? I'm sure they'll see sense when they realise what an economic genius you clearly are.

Keynes, Hayek and now the third way... Anonsky.

[AtW]

Why don't you right a letter to the BoE? I'm sure they'll see sense when they realise what an economic genius you clearly are. Keynes, Hayek and now the third way...

Can you maybe remove my name from your post? You can keep it if you post your own full name that can be verified as yours.

Keynes advocated Govts saving money in good times to spend them in bad times, that's a very sensible approach that would have worked if Govts did the first thing (saving money).

BoE may claim they were not allowed legally to deal with banks investing into tulip (FSA job), or even house price bubble, but dealing with inflation is their job.

BoE certainly won't care about my letter since they've got an agenda that is different to their stated mission goals, frankly Crown Prosecution Service should have dealt with this long time ago - this is no longer incompetence (underestimating inflation), we've got here blatant breach of formal duties.

[OwlHoot]

I care because I get fook all interest on my savings account and inflation is rampart, whilst at the same time people who got in debt that they could not manage enjoy lowest payments they could never wished for. How is that fair?

Everyone on here has been advising, actually urging, you to get a mortgage for several years.

But you knew better.

[DimPrawn]

Can you maybe remove my name from your post? You can keep it if you post your own full name that can be verified as yours.

Keynes advocated Govts saving money in good times to spend them in bad times, that's a very sensible approach that would have worked if Govts did the first thing (saving money).

BoE certainly won't care about my letter since they've got an agenda that is different to their stated mission goals, frankly Crown Prosecution Service should have dealt with this long time ago - this is no longer incompetence (underestimating inflation), we've got here blatant breach of formal duties.

You ain't gonna change it AtW.

You've got a situation where your savings are going to be worth more today than in the future due to currency debasement and high inflation.

Normally you'd expect high interest rates to compensate for this, but it's absolutely clear we aren't going to see this for many many years.

Therefore, if you can borrow cheaply now (with a big deposit) at very low rates (example HSBC tracker is 2.6% APR) you'd be mad not to grab a physical asset like a house now, even if the purchase price seems steep, since the overall cost will be low compared to a cheap house when base rates are 15%.

I hope this makes sense to your communist mind.

[Churchill]

Can you maybe remove my name from your post? You can keep it if you post your own full name that can be verified as yours.

Sorry mate, you put your head above the parapet long ago. Now you've appeared in the International Press it's in the public domain.