Negative interest rates should be considered says Bank of England deputy governor

[Martin@AS Financial]

Negative interest rates should be considered says Bank of England deputy governor | News | Mortgage Strategy

Fantastic news if your mortgage debt is linked to BOE Base Rate (providing there is no floor) but a complete and utter disaster if you are a saver such as a pensioner.

[sasguru]

Negative interest rates should be considered says Bank of England deputy governor | News | Mortgage Strategy

Fantastic news if your mortgage debt is linked to BOE Base Rate (providing there is no floor) but a complete and utter disaster if you are a saver such as a pensioner.

Would there be any "products" with no floor?

[MarillionFan]

Negative interest rates should be considered says Bank of England deputy governor | News | Mortgage Strategy

Fantastic news if your mortgage debt is linked to BOE Base Rate (providing there is no floor) but a complete and utter disaster if you are a saver such as a pensioner.

Yes, yes, yes, yes, yes!!! Do it!!!!!!!!!

I'm on 0.98% interest only offset and all of my actual equity which is almost the full mortgage amount is getting me 5% after tax anyway.

Drop it to -5!!!!

[Martin@AS Financial]

Would there be any "products" with no floor?

hehe - kept the word "product" out this time. There's still a few but a lot of trackers are the same price if not more than fixed rates currently.

If Base Rate were to drop to 0%, you can guarantee that more floors will be introduced or the spread above will increase.

[d000hg]

Negative interest rates should be considered says Bank of England deputy governor | News | Mortgage Strategy

Fantastic news if your mortgage debt is linked to BOE Base Rate (providing there is no floor) but a complete and utter disaster if you are a saver such as a pensioner.

Maybe I should switch my mortgage application to a tracker

[KentPhilip]

but a complete and utter disaster if you are a saver such as a pensioner.

Who could take out their savings as cash, and stuff that under the mattress. Try applying a negative interest rate to that!

[OwlHoot]

I thought "introducing negative interest" was pretty much synonymous with "allowing inflation a looser rein".

Obviously missing some subtlety - I may have to dig out that big economics book and skim through it again.

edit: Interesting article here

[cojak]

Who could take out their savings as cash, and stuff that under the mattress. Try applying a negative interest rate to that!

And the price of gold would soar!

[centurian]

I thought "introducing negative interest" was pretty much synonymous with "allowing inflation a looser rein".

WHS + QE

We've effectively had negative interest rates for years.

[DimPrawn]

Desperate to reinflate the credit boom, at any cost.