Today's interest rate decision

[supermono]

Let's see how savvy the PH massif is.

SM

[Jem0911]

A half I hope,

[supermono]

Jem0911 said:

A half I hope,

Why not three quarters or 1?

SM

[anonymous-user]

half, but needs 1.

[richardxjr]

Dave_ST220 said:

half, but needs 1.

Hence 0.75 I think.

[Egbert Nobacon]

Dave_ST220 said:

half, but needs 1.

I agree, but they won't do a full 1% as it leaves them little scope to be seen to be "doing something" in later months if things deteriorate.

[oyster]

richardxjr said:

Dave_ST220 said:

half, but needs 1.

Hence 0.75 I think.

Agree. I think the MPC will come to this compromise.

[sleep envy]

makes no difference, they won't pass it on

[Adrian W]

this morning on the tv they were saying whatever happends to the mlr the banks wont cut interest rates, accusing the banks of making profits with the taxpayers money.

[kambites]

sleep envy said:

makes no difference, they won't pass it on

Pft. They'll pass it on to savers, you can be sure of that.

[tonyvid]

As my motgage is a tracker, I presume it has to follow?

[Maxf]

tonyvid said:

As my motgage is a tracker, I presume it has to follow?

Depends what it tracks. BOE - then yes (although might not track straight away). Bank rate then no.

[richardxjr]

sleep envy said:

makes no difference, they won't pass it on

It will affect me, my business, and my staff greatly. Tracker mortgage and invoice discounting rates linked to base.

[tonyvid]

Maxf said:

tonyvid said:

As my motgage is a tracker, I presume it has to follow?

Depends what it tracks. BOE - then yes (although might not track straight away). Bank rate then no.

BOE +0.59% I think.

[Fittster]

So historically low interest rates and historically high inflation.

Anyone got any figures for increases in the money supply?

[Soovy]

sleep envy said:

makes no difference, they won't pass it on

+1

[anonymous-user]

sleep envy said:

makes no difference, they won't pass it on

This is the annoyance, have the government told them they MUST pass on rate cuts as part of the bail out deals? Tax payers money but the tax payer is still getting screwed!!

[Goochie]

Diddnt the Japanese go through a long period of having similar economic problems where cuttin gth einterest rates did very little (if anything) to help?

[Dirty Boy]

I think we might see the full 1%, we're already seeing the information released showing sharp and continuous declines in manufacturing and services, worse than predicted.

The BOE need to 'man up' and I think perhaps they will today.

Will we see the cuts passed onto us? Probably not, the banks need to repay their money somehow, and who said the BOE was independent?

[kambites]

Goochie said:

Diddnt the Japanese go through a long period of having similar economic problems where cuttin gth einterest rates did very little (if anything) to help?

Well they got to 0% and then they were a bit stuck. They were in a far worse position than we are now though.