Reply to: Will interest rates go down then?

[TykeMerc]

Not really, the fat bastards will use the money better.

Not on the currently available evidence.

HMG has never been much good at spending our tax money effectively, but if some of the collosal banking profits wind up in the treasury we might get our Victorian school, hospital and transport infrastructure upgraded.

Ok I'm being wildly optimistic, but when Lehmans UK bleated that the >2 Billion that was siphoned off by the US company was destined for bonus payments it makes you wonder just how many traders got how much.

[Cyberman]

Better that HMG gets it than the fat bastards with their golden parachutes and billion bonusses I say!!!!!!!!

Yes, but it is even better if we got it in interest rate cuts, which we won't because of HMG ineptness in screwing the banks for 12%!!

[stackpole]

Better that HMG gets it than the fat bastards with their golden parachutes and billion bonusses I say!!!!!!!!

Not really, the fat bastards will use the money better.

[stackpole]

whats to stop me walking into tulip west and asking for a 1% mortgage fixed for 22.75 years and when he tells me no , I can fire his ass

The "I can fire his ass" bit.

[TykeMerc]

HMG are earning 12% on preference shares. I order for the banks to pay this they must generate profits. Thus, they will not cut interest rates. This is a stealth tax on mortgagees by HMG to fill their black hole !!

Better that HMG gets it than the fat bastards with their golden parachutes and billion bonusses I say!!!!!!!!

[Cyberman]

What's the point of us voting (or not voting) for a government at all if we can't then expect them to act on our behalf when fuel companies/foreign governments/illegal immigrants/money-grabbing bankers don't play ball?

It's not about government control of everything, it's about government as representatives of the people and making sure we don't get completely ripped off. Especially when these financial places have caused the current problems in the first place and are being bailed out by money raised from the people.

The instinctive British fear of government control/nanny state, admirable though it is a lot of the time, does seem to stop beneficial and positive action being taken on our behalf as well.

HMG are earning 12% on preference shares. I order for the banks to pay this they must generate profits. Thus, they will not cut interest rates. This is a stealth tax on mortgagees by HMG to fill their black hole !!

[HairyArsedBloke]

I'm glad that mine tracks .5% above the boe base rate until 2090. Can't see the rates going up much anytime soon.

Worry about it in 82 years then. If your leasehold is less than 82 years to go, you might find a buyer for the balance of the term.

[Tensai]

I don't think sterling will handle big rate cuts, they might try but I bet it ends in tears. shamateurnomics

Current Bank Rate 4.5%
Current Inflation (CPI) 5.2%

Can anyone *knowledgeable* remind me of the practical medium term effects of negative interest rates? I seem to recall the Japanese had a rough time with that until very recently....

I could of course Google it but frankly can't be asred.

[DimPrawn]

I don't think sterling will handle big rate cuts, they might try but I bet it ends in tears. shamateurnomics

Good for exports when one £ is worth 20c.

If only we exported something....

[rootsnall]

Yes, interest rates are going to fall - a lot.

I don't think sterling will handle big rate cuts, they might try but I bet it ends in tears. shamateurnomics

[BoredBloke]

I'm glad that mine tracks .5% above the boe base rate until 2090. Can't see the rates going up much anytime soon.

[dang65]

If you want more government control of everything, move to North Korea you bloody Communist.

What's the point of us voting (or not voting) for a government at all if we can't then expect them to act on our behalf when fuel companies/foreign governments/illegal immigrants/money-grabbing bankers don't play ball?

It's not about government control of everything, it's about government as representatives of the people and making sure we don't get completely ripped off. Especially when these financial places have caused the current problems in the first place and are being bailed out by money raised from the people.

The instinctive British fear of government control/nanny state, admirable though it is a lot of the time, does seem to stop beneficial and positive action being taken on our behalf as well.

[Mike Hunt]

But dont us taxpayers basically own most of the banks anyway,

whats to stop me walking into tulip west and asking for a 1% mortgage fixed for 22.75 years and when he tells me no , I can fire his ass

[DimPrawn]

Yes, the question was, is there really no legal requirement for lenders to reduce their interest rates to borrowers when the central bank reduces its rate? I presume you are saying, "No, there is no requirement", and I can understand that for very small changes, but I'm surprised to hear that it would apply to large reductions as well.

I mean, we all get grumpy when the price of oil drops but petrol and diesel don't. If the price of oil dropped big time, then I'd expect the government to step in if that wasn't passed on.

If you want more government control of everything, move to North Korea you bloody Communist.

[Bagpuss]

There will be a lot of people looking for non existant deals when they come off the discounted SVRs. I'll take the keys forra fiver.. Doomed!/Boomed!