Reply to: BOE interest rate cut this week...

[Dark Black]

No no no.. we don't want a drop...

Put it up. I've all the lovely dosh from our house sale stashed away... paying the rent from the interest from that little lot.

[DimPrawn]

wish I'd stuck it all in those 2 year fixed 6% savings accounts that were around a few months ago.

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HTH

[BrilloPad]

Didn't someone say that yesterday?

Was it atw?

[HairyArsedBloke]

Any ideas what to do with dosh to make a better return over 2 years (or when house prices bottom out, which ever is later)?

Iceland has some good rates.

[Olly]

Don't bloody cut the interest rates...I've being saving up all my hard earned pennies to buy a house and would like it to earn a bit while is sits in the bank please thank you very much.....wish I'd stuck it all in those 2 year fixed 6% savings accounts that were around a few months ago.

On the plus side...I get paid in Euro and plan to sell my Bulgarian pad in Euro too.

Any ideas what to do with dosh to make a better return over 2 years (or when house prices bottom out, which ever is later)?

[Platypus]

A one per cent cut will give me 1,100 quid a year disposable income tax free.

A cut will help the pound slump further which is good for anyone being paid in US$

[Cyberman]

What will you gain from a BoE interest rate cut?

A one per cent cut will give me 1,100 quid a year disposable income tax free.

[sasguru]

I say no cut.

tough it out and protect the mighty £

the worthless currency of a failing, medium sized country that is on a downward slope to insignificance.

HTH

[Diver]

I say no cut.

tough it out and protect the mighty £

[HairyArsedBloke]

"I only created a lax monitory policy so that you could borrow more to spend on goods and houses. Look how much your house went up in value; didn’t that make you feel richer? I only wanted to make you love me and vote nuLieBore. Now you have thrown it all in my face, I hate you all. I am going to cry now." - Gordon Brown.

[DimPrawn]

What will you gain from a BoE interest rate cut?

Lenders will not pass it on (so loans and mortgages will be very costly still), you will damage savers interest (including many pensioners), and inflation will still be well above 2%.

It's madness.

Bump up the BoE interest rate to 10% I say. That'll make the pound so strong we'll be importing goods for next to nothing and travelling like kings on holidays!

[TimberWolf]

The PM has gone hand in cap to King Saud - how much lower can he go?
Surely the king is pinching himself that this isn't a dream.

Is it all a dream. Bright eyes...

Seems like a sensible policy to me. We rely on the rest of the world to supply us with our energy needs (globalisation is king, little Englander is so yesterday) and they buy our assets in return. What could possibly go wrong?

[HairyArsedBloke]

The Implications of Deep Interest Rate Cuts

Whilst people are quick to rejoice at the news of deep interest rate cuts to bolster the economy, however there is a price to pay as I voiced over 6 months ago that would occur following the Bank of England being forced to cut interest rates regardless of the inflation rate, and that price is in the CRASH of the British Pound from 2.10 to 1.55 or 26%! For there is no such thing as a free lunch, the crash in sterling will result in higher inflation beyond the current period of deflation i.e. the PERFECT STORM that we have been heading for these past 12 months, and now accelerating into. The perfect storm of asset price deflation coupled with currency devaluation inflation equals stagflation for several years, therefore this recession will be followed by subdued economic activity for many years.

Didn't someone say that yesterday?

[Cyberman]

Make up your damn minds people. Either bitch that GB is stupid for giving away control over interest rate, or bitch that he is making bad choices setting the rates. If he's so hopeless about understanding the economy, why does everyone complain about him delegating it to someone else?

Good interest rate strategy is vital in a recession, but is also vital BEFORE a recession, and rates should have been drastically cut a year ago. It was a mistake to hand this tool over to the MPC with no get-out clause. Now that Brown is being panicked into breaking yet another policy decision(ie: a U-turn) it is too late.
Shame !!

[d000hg]

GB has to keep up the pretence, but I think it's clear to everyone that the BoE will deliver whatever GB wants.

Make up your damn minds people. Either bitch that GB is stupid for giving away control over interest rate, or bitch that he is making bad choices setting the rates. If he's so hopeless about understanding the economy, why does everyone complain about him delegating it to someone else?