Reply to: Bank Of England Base Rate News

[DimPrawn]

All pointless guff without "Atw's Comment".

[Martin@AS Financial]

Base rate held at 0.25%

From the Financial reporter:

The Bank of England's Monetary Policy Committee voted unanimously to maintain Bank Rate at 0.25% in its latest meeting.

Last month, in a much-anticipated move, the Bank of England voted to cut the base rate to 0.25% and announced plans to introduce a package of measures designed to provide additional monetary stimulus.

A majority of members also expect to support a further cut in Bank Rate later this year. The MPC "currently judges this bound to be close to, but a little above, zero".

[AtW]

I've now topped up to 80k this week and have the repayments from low risk going into high risk at 11.7%. Time will tell whether that was a good idea.

[MarillionFan]

Do recommend it MF?

I do recommend it. DP used to as well.

I've had an account with them for years with a balance between 5 and 10k. Been getting near 5% for years and for low risk it's now 4.7. I get money each month and reinvest. I did add to 30k a few years ago but reduced it, having no issue getting cash back out.

I've now topped up to 80k this week and have the repayments from low risk going into high risk at 11.7%. Time will tell whether that was a good idea.

They're also about to launch an ISA in the next month. Only thing is, not FSA covered

[The Spartan]

Getting 4.7% on Zopa

Do recommend it MF?

[BrilloPad]

If it hasn't already, this will just push savers into more risky investments.

I.e. zopla / securities

Or they might withdraw their cash and put it under the mattress.

BoE are reducing the velocity of money. Bravo Carney.

[blackeye]

If it hasn't already, this will just push savers into more risky investments.

I.e. zopla / securities

[DimPrawn]

Getting 372% watching the walls of my house go up in value every year.

[MarillionFan]

Getting 4.7% on Zopa

[Martin@AS Financial]

Savers to suffer as First Direct cuts rates further than Bank of England

From the Guardian:

Other banks expected to cut savings rates as First Direct announces its cash Isa rate will be cut by 0.4 percentage points.

One of the UK’s most high profile savings providers has announced interest rate cuts in excess of the Bank of England’s recent base rate reduction.

On Thursday the BoE reduced interest rates to a new historic low of 0.25% in a move designed to prevent a post-Brexit recession. At the same time, the Bank’s governor, Mark Carney, told banks and building societies it expected them to pass on the rate cut to borrowers and offered a £100bn fund to help them do so.

Customers with mortgages and savings rates pegged to the Bank base rate were automatically guaranteed a cut, but those with rates set by lenders have been waiting to see if the cut will be passed on.

At the weekend, First Direct wrote to savers telling them it would be reducing returns on a range of accounts from 18 October. Two accounts will see cuts greater than the 0.25% reduction announced by the BoE on Thursday.

First Direct’s cash Isa will have its rate cut by 0.4 percentage points, from 1.3% to 0.9%, while the rate on its bonus savings account will be chopped from 0.75% to 0.4%. A range of other accounts will be subject to a 0.25 percentage point cut.

In an email to customers, First Direct said: “We know this isn’t great news for savers, but even though our savings rates are not directly linked to the base rate, we’ve taken this time to review our savings accounts.”

It added: “You’ll see that we’ve reduced our Isa and one of our Bonus Savings rates by more than the base rate, but we’re confident that these rates will still remain competitive.”

Savers had long been suffering from low returns, and expectations that the Bank would reduce the base rate led to the withdrawal of many best buy accounts ahead of Thursday’s decision. One bank, NatWest, had even written to business customers warning that it could one day start to charge for deposits.

Susan Hannums, director of Savingschampion.co.uk, said the cut was “adding insult to injury” for savers. “Although one of the first to announce their plans for savers, First Direct won’t be the only provider to take full advantage of this base rate decision to cut rates.

“It is, however, always disappointing when providers use the excuse to cut rates by more than the change in the base rate, especially when rates are already so low,” she said. “Although First Direct would argue that not all their accounts are being cut by more or even the full 0.25%, this will be little solace to savers such as those holding its cash Isa.

“Our concern is they will be setting the tone for other providers to follow. All eyes will be on what the providers are doing and the worse it is, the easier it will be for others to follow suit.”

Marsden building society has also made some cuts deeper than that of the BoE. According to data provider Moneyfacts, it has reduced interest on its Easy Access Branch Saver from 0.7% to 0.4%, while its Easy Access Direct Saver is to fall from 0.65% to 0.25%.

A number of other providers have pulled accounts for new customers and relaunched them with lower rates, according to Moneyfacts. Charter Savings bank has dropped rates on its 30-, 60- and 95-day notice accounts by 0.25 percentage points. Skipton building society’s five-year fixed-rate bond now offers 1.5%, down from 2.01% before Thursday.

Rachel Springall from Moneyfacts said: “Fixed-rate savings deals are likely to be impacted by this base rate cut because savers will be looking for a secure rate to boost their cash and this demand will in turn cause a fall out of the best buys with providers struggling to cope.”

She added: “It’s highly likely the trend in rate cuts and withdrawals will continue over the coming months, so anyone looking to grab a fixed deal needs to be fast so they don’t miss out.”

Immediately after the BoE cut Santander said it was reviewing its rates, but that none of its personal and business savings accounts would see interest cut by more than 0.25 percentage points as a result of the base rate change.

It warned that it was also looking at rates on its current accounts, which include the popular 123 account.

Nationwide building society also said it was reviewing rates, but committed to maintaining the amount it paid on a range of regular savings accounts and said no cuts would be bigger than 0.25%.

[NigelJK]

I guess that's your one contribution to Society. You're unlikely to be a strain on the OAP services.

[FatLazyContractor]

http://www.ft.com/cms/s/0/aefbbef6-5...#axzz4GNiAePk6



Waiting to see the Brexit pensioners die a painful death

[TykeMerc]

In truth do you think they will raise rates significantly just to shore up the value of Sterling?

There's going to be adjustment, that was always inevitable whichever way the vote went.
Personally I think the fallout from a Remain vote would have been rather nasty as the UK would have been labelled as the EU's new biotch and the currency seen as weakened, but that's purely speculation.

I doubt there will be a collapse in the long term value of Sterling as a result of Brexit and with the interest rates all over the planet being extremely low I can't see the UK rates being rammed up high unless inflation runs away and that looks extremely unlikely.

[BlasterBates]

I'm confused.

We were warned that if the UK voted for Brexit it would mean interest rates would go up and no-one would be able to pay their mortgages.

You're not telling me that yet another of the pre-vote warnings was wrong are you?

Long term.

Think of Brexit like the progression of a disease, and higher interest rates as a symptom of "advanced Brexit".

Firstly there is a an economic shock that will require interest rates to go down to prevent a "cardi(Brexit)ac arrest", in this phase the pound will go down and the economy will shrink as everyone gets poorer. Eventually sometime after Brexit the country will adjust to a post Brexit state of lower growth and higher interest rates as the pound loses its reserve currency status.

[MrMarkyMark]

I'm not sharing anything. These idiots can say/ believe what they want. I'll carry on regardless. 52% are idiots to be exact. More than half on this forum too.

I like made up stats too .

How about 95% of this forum think you are a complete fecking, thick as mince, chunt