Interest Rate Decision Today

[Gonzo]

Rate cut to 1% - who'd have thought it?


EDIT - I see Brillo beat me to that announcement in another thread.

[Bear]

I wonder what it will be?

Does anyone care any more?

Is it possible for savers to get less reward than they are at the moment?

I care - I have 2 tracker mortgages - I now pay about £1500 a month less in interest than I did 6 months ago!!


Edit: about £1700 a month less - 0.5% cut

[Mich the Tester]

IMO

For what the governments around the world are trying to achieve (ie more cash flowing around the system), cutting interest rates has to have a greater effect than most of the other measures they've tried such as the pathetic cut in VAT and underwriting or guaranteeing loans.

If I have more money in my pocket and I'm not going to earn didley squat by saving it, I have two options;

1) Pay off existing debts (my current option) increasing the banks liquidity and allowing them to redress their balance sheets deficits.

2) Spend it, thereby increasing the money spent on the high street, reducing company failures and subsequent redundancies.

Once they've run out of reductions in interest rates (which is just round the corner), the only other way to carry this on would be tax cuts, which the government cannot now afford!

3) Save it, accepting almost no returns except that your money is worth more due to deflation.

[robbie274]

Isn't it more to do with banks lending to themselves ??

Who then can't lend it out to customers

[Mich the Tester]

Isn't it more to do with banks lending to themselves ??

Why would they lend to anyone if they can’t earn any money from it?

[thelace]

IMO

For what the governments around the world are trying to achieve (ie more cash flowing around the system), cutting interest rates has to have a greater effect than most of the other measures they've tried such as the pathetic cut in VAT and underwriting or guaranteeing loans.

If I have more money in my pocket and I'm not going to earn didley squat by saving it, I have two options;

1) Pay off existing debts (my current option) increasing the banks liquidity and allowing them to redress their balance sheets deficits.

2) Spend it, thereby increasing the money spent on the high street, reducing company failures and subsequent redundancies.

Once they've run out of reductions in interest rates (which is just round the corner), the only other way to carry this on would be tax cuts, which the government cannot now afford!

[badger7579]

Isn't it more to do with banks lending to themselves ??

[robbie274]

Does it matter if it goes any lower banks are not passing much onto us anyway.

[Mich the Tester]

Wouldn’t it be better to raise interest rates, thereby encouraging savers to make deposits that can then be lent out? Surely an interest rate cut is useless if there’s no money being lent out?

[badger7579]

I wonder what it will be?

Does anyone care any more?

Is it possible for savers to get less reward than they are at the moment?

I'll take a punt at a drop of 1%. You might as well spend most of your cash (if you have any) seeing as there is no interest being gained anymore.

Cheers Gordon

[Sysman]

Interest rate cut 'pointless', experts say

Experts dismissive as Bank of England set to unveil 0.5pc cut.

[zara_backdog]

Makes me glad I have a mortgage

My first one was 15%

[Gonzo]

I wonder what it will be?

Does anyone care any more?

Is it possible for savers to get less reward than they are at the moment?