Bank Rate to go lower

[HairyArsedBloke]

After today’s inflation figures – they’d be barking; which means that there is a fair chance.

“Ah, but most of the inflation is in non-core items and they are less affected by interest rates”, I hear some say. True, but most of these items are imported and so foreign exchange rates are important here. Cutting rates would weaken Sterling and push inflation up even further.

[DimPrawn]

Makes no difference to borrows, that rate is only going to go up.

Savers will lose out of course, they always do.

[VectraMan]

Yes indeed. It was expected that if it was held at 5% this month (it was) then next month it would be reduced by 0.25%. Now that today the CPI inflation figure is out and has gone up to 3%, they probably won't... perhaps even increase it... eek!

Financial bloke on Working Lunch saying he fears inflation will be at 4% in 6-12 months time (and we all know that true inflation is much higher than the CPI). They may have to increase it.

[MrRobin]

It is true you heard that on the radio.

HTH



With inflation increasing a base rate decrease is less likely.

Yes indeed. It was expected that if it was held at 5% this month (it was) then next month it would be reduced by 0.25%. Now that today the CPI inflation figure is out and has gone up to 3%, they probably won't... perhaps even increase it... eek!

[basshead]

It is true you heard that on the radio.

HTH



With inflation increasing a base rate decrease is less likely.

[Cooperinliverp00l]

Is it true i heard on the radio that the Bank Of England are thinking of dropping their rate again !!!!

This is ace as my tracker offset mortgage means i'm paying the same but knocking months off my mortgage.

Of course won't benefit for another 23 years but still.....