Rates cut to 0.5%
Discussion
Skipppy said:
But correct...
Why though? IT'S NOT WORKING!
Yeah, it's pretty pointless and just penalises sensible savers. They should be concentrating on the other end of the yield curve.Why though? IT'S NOT WORKING!
Mind you the BoE's single mandate is to target a given inflation rate, officially it isn't supposed to take into account other economic factors. Some other central banks have a dual mandate.
Skipppy said:
But correct...
Why though? IT'S NOT WORKING!
IndeedWhy though? IT'S NOT WORKING!
It is penalising savers while doing little to improve the availability of credit.
The problem is not the price of credit but it's quantity. Despite previous cuts unsecured loans are now 8-10% even for people with the best credit history.
illmonkey said:
Mortgage down an other £70 a month. Whilst its not great news for everyone, its giving me a good chance to shove loads into savings.
Why aren't you paying down the Capital instead?What will you do when interest rates are at 7 or 8%?
What return are you getting on your savings?
Bing o said:
illmonkey said:
Mortgage down an other £70 a month. Whilst its not great news for everyone, its giving me a good chance to shove loads into savings.
Why aren't you paying down the Capital instead?What will you do when interest rates are at 7 or 8%?
What return are you getting on your savings?
a full £6 a month savedrichyb said:
I'm holding out for -0.5%. Come on Gordon you've tried everything else.
It won't go negative IMO;1) A significant number of people will not pay to use banks.
2) Same number withdraw majority of cash in favour of keeping it under their mattress.
3) Bank has less money to invest and less equity.
4) Banks are more f
ked than they were to start with.I'm still waiting for the crime rate to go through the roof. I've fitted my deadlocks and everything...
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