Why Don't They Cut Interest Rates?

[CzechItOut]

Now, I'm no financial genius, but considering these two articles from recent days:

Families a record £9 a week poorer than a year ago

Interest rate rise would hit 90% of homebuyers, says analyst

Surely the obvious way boost consumer confidence and to put a few pounds back in to people's pockets is to cut interest rates by 0.5%?

In all seriousness, what is preventing the BoE cutting interest rates? Is there some kind of physiological barrier preventing interest rates from reaching zero?

[B17NNS]

Interest rates need to go up not down.

And when they do, not if, a lot of people who have absorbed the price increases but not felt real pain due to being on tracker mortgages will be up st creek without a paddle.

Bad times ahead.

[MX7]

Make interest rates zero?

[NoelWatson]

CzechItOut said:

Now, I'm no financial genius, but considering these two articles from recent days:

Families a record £9 a week poorer than a year ago

Interest rate rise would hit 90% of homebuyers, says analyst

Surely the obvious way boost consumer confidence and to put a few pounds back in to people's pockets is to cut interest rates by 0.5%?

In all seriousness, what is preventing the BoE cutting interest rates? Is there some kind of physiological barrier preventing interest rates from reaching zero?

I think they should give each hard working family £20k.

[The real Apache]

I'd have thought boosting consumer confidence is most definitely not part of the plan......unless I've completely misunderstood how increasing taxes and vat whilst putting more workers on benefits is going to save us from disaster

[jonny70]

NoelWatson said:

I think they should give each hard working family £20k.

How ? Where from? The cupboards are bare.

[NoelWatson]

jonny70 said:

How ? Where from? The cupboards are bare.

Let us not concern ourselves with irrelvancies such as these. Fire up the printing presses. Hard working families is what matters.

[Fittster]

jonny70 said:

NoelWatson said:

I think they should give each hard working family £20k.

How ? Where from? The cupboards are bare.

Have you missed QE? If they are dishing out free money they might as well cut out the middle men.

[Ozzie Osmond]

MX7 said:

Make interest rates zero?

They already ARE zero!

6% in 1971
12% in 1981
12% in 1991
5% in 2001
0% in 2011

[MX7]

Ozzie Osmond said:

MX7 said:

Make interest rates zero?

They already ARE zero!

6% in 1971
12% in 1981
12% in 1991
5% in 2001
0% in 2011

0.5%. It's close to zero, but it's not 0%.

[jonny70]

Fittster said:

Have you missed QE? If they are dishing out free money they might as well cut out the middle men.

Would cause economic collapse. Inflation would spiral into the hundreds of percent just like the Weimar Republic in 1930. Was that actually a serious reply?

[JohnnyRims]

jonny70 said:

Would cause economic collapse. Inflation would spiral into the hundreds of percent just like the Weimar Republic in 1930. Was that actually a serious reply?

I don't think it was you know

[Pesty]

jonny70 said:

Would cause economic collapse. Inflation would spiral into the hundreds of percent just like the Weimar Republic in 1930. Was that actually a serious reply?

The Inflation rising, is this anything to do with the QE that has been done?

[TankRizzo]

jonny70 said:

Would cause economic collapse. Inflation would spiral into the hundreds of percent just like the Weimar Republic in 1930. Was that actually a serious reply?

No, it won't. It didn't when we did it before.

Might as well print some more to be honest. The Government could just give it to us directly.

[jonny70]

TankRizzo said:

No, it won't. It didn't when we did it before.

Might as well print some more to be honest. The Government could just give it to us directly.

Yes ,it does cause inflation ,look at history. The more their is the less value it has ..

[TankRizzo]

jonny70 said:

Yes ,it does cause inflation ,look at history. The more their is the less value it has ..

Nonsense, we learn nothing from history. Hard working families need the money, so let's start churning some out.

[Pesty]

TankRizzo said:

Nonsense, we learn nothing from history. Hard working families need the money, so let's start churning some out.

Something tells me you are being sarcastic

[fergywales]

TankRizzo said:

Nonsense, we learn nothing from history. Hard working families need the money, so let's start churning some out.

[TankRizzo]

Sorry. Scary really, this is how Winky must have thought when he was PM.

[otherman]

TankRizzo said:

Nonsense, we learn nothing from history. Hard working families need the money, so let's start churning some out.

If only the government would just pay everyone 100k per year each then everything would be fine. Then I could stop working now and go on holiday.