Will the BoE cut interest rates to 0.5% this week?

[sleep envy]

Darling's attempt to slow down the recession doesn't seem to be having much success IMO so what's going to happen this week?

As an aside I wonder if they're going to use the D:Ream song again for their election campaign

[anonymous-user]

No, on a side note i can't believe it's that time again!

[Fidgits]

can they really afford to cut it further?

[sleep envy]

it's been done before

what happens when the interest rates hit 0%?

Edited by sleep envy on Monday 2nd March 14:19

[anonymous-user]

sleep envy said:

it's been done before

what happens when the interest rates hit 0%?

Edited by sleep envy on Monday 2nd March 14:19

You earn fk all on savings & the banks don't pass on the rate to borrowers.

[Fidgits]

thats what i mean though...

it clearly hasnt worked taking it to 1%, is the extra 0.5% really going to make a difference?

I can see a 0.25% cut to be 'seen to be doing something' - but it'll be completley pointless.

[sleep envy]

the question was more in the interests of the bigger picture

[ipitythefool]

Fidgits said:

thats what i mean though...

it clearly hasnt worked taking it to 1%, is the extra 0.5% really going to make a difference?

How do you know?

If rates were still at 5% the recession might be a whole lot worse already and inflation might be at minus 2% already.

[rabw]

sleep envy said:

it's been done before

what happens when the interest rates hit 0%?

Edited by sleep envy on Monday 2nd March 14:19

Don't know, but since like many I have no mortgage and limited savings (few yrs out of uni), none of the interest rate changes have made me 'feel' and different about spending. Can't see that changing if rates are 0%... I'll just keep saving for a house.

[Somewhatfoolish]

I suspect 25points at the most

[Fidgits]

ipitythefool said:

Fidgits said:

thats what i mean though...

it clearly hasnt worked taking it to 1%, is the extra 0.5% really going to make a difference?

How do you know?

If rates were still at 5% the recession might be a whole lot worse already and inflation might be at minus 2% already.

i was reffering to the cut from 2.5% down to 1%... considering the marjority of banks aren't passing on any of these savings below about 3%, but killing peoples savings - IMO it hasnt made a difference to the situation were in...

[ipitythefool]

Fidgits said:

ipitythefool said:

Fidgits said:

thats what i mean though...

it clearly hasnt worked taking it to 1%, is the extra 0.5% really going to make a difference?

How do you know?

If rates were still at 5% the recession might be a whole lot worse already and inflation might be at minus 2% already.

i was reffering to the cut from 2.5% down to 1%... considering the marjority of banks aren't passing on any of these savings below about 3%, but killing peoples savings - IMO it hasnt made a difference to the situation were in...

You may be right but we'll never know.

Perhaps if the BoE had cut sooner we might not have had such a severe recession (though I know others will disagree on this).

[GregE240]

Ric, can I have an option that says "I've just fixed for 2 years so I fking hope not"

[Fidgits]

ipitythefool said:

Fidgits said:

ipitythefool said:

Fidgits said:

thats what i mean though...

it clearly hasnt worked taking it to 1%, is the extra 0.5% really going to make a difference?

How do you know?

If rates were still at 5% the recession might be a whole lot worse already and inflation might be at minus 2% already.

i was reffering to the cut from 2.5% down to 1%... considering the marjority of banks aren't passing on any of these savings below about 3%, but killing peoples savings - IMO it hasnt made a difference to the situation were in...

You may be right but we'll never know.

Perhaps if the BoE had cut sooner we might not have had such a severe recession (though I know others will disagree on this).

Thats the thing with these things though - you can never know what outcome a different action would cause..

Yes a sooner cut could have softened things, or made no difference... no cut at all could have made no difference..

we'll never know.

[sleep envy]

GregE240 said:

Ric, can I have an option that says "I've just fixed for 2 years so I fking hope not"

sorted

[anonymous-user]

GregE240 said:

Ric, can I have an option that says "I've just fixed for 2 years so I fking hope not"

Why would you fix for two years? There's a bloody good chance that is when rates will be rising IMO,a tracker surely would have been a better bet until the signs of rates rising appear?

[Steamer]

sleep envy said:

....As an aside I wonder if they're going to use the D:Ream song again for their election campaign

I think its time they switched to one of D:Ream's less known tracks:

D:Ream - Blame It On Me

or

D:Ream - Take Me Away

[NoelWatson]

Consensus on BBG is for 0.5% cut

[sleep envy]

NoelWatson said:

Consensus on BBG is for 0.5% cut

what does that do to the economy as a whole (and I'm not asking about people's savings or their mortgages)?

[shirt]

t'would be nice, but i think they'll stick this month.