This Week's MPC Interest Rate Decision - Up/Down/Hold?

[emicen]

Didnt find a topic via search, so:

What say ye pistonheaders? Up, down or hold?

I believe we will see a further cut on the back of the growing downturn but I dont think they can afford to be as sweeping as before. There needs to be more time for the existing cuts to filter through and they need to be careful of what happens to Sterling.

0.25-0.5% cut I reckon.

[Maxf]

Hold. Gives them more ammunition for the coming months.

[130R]

0.75% cut

[trooperiziz]

-0.5%

(of which the banks will pass on the full amount on savings, and 0.25% on SVR mortgages)

[RJE1966]

anonymous said:

[redacted]

I hope you are right, but I wonder if they will hold this month letting previous cuts filter through?

[Puggit]

anonymous said:

[redacted]

Me too - for Sterling to make some gains back on $/€

[NoelWatson]

Bloomberg:

Expected rate after midday tomorrow

Median: 1.5%
Average 1.37%

[RJE1966]

NoelWatson said:

Bloomberg:

Expected rate after midday tomorrow

Median: 1.5%
Average 1.37%

So is that 'factored in' to sterlings value already?
I supsect it is, so the net effect will be a strenghtening if there is no cut, no change if the cut is .5-.63 and a further slide if greater?

[Bing o]

Does it even matter anymore? We are royally fked...

[Skipppy]

anonymous said:

[redacted]

There's no sense in cutting it unless they want to feck over savers. The banks WILL NOT pass anymore rate cuts to mortgage customers.

[whitechief]

0.5% cut is my guess.

Edited by whitechief on Wednesday 7th January 14:25

[anonymous-user]

5 points up to help the pound and my savings

Pretty Please!!!

[NoelWatson]

RJE1966 said:

NoelWatson said:

Bloomberg:

Expected rate after midday tomorrow

Median: 1.5%
Average 1.37%

So is that 'factored in' to sterlings value already?
I supsect it is, so the net effect will be a strenghtening if there is no cut, no change if the cut is .5-.63 and a further slide if greater?

That is the theory

[JagLover]

There is no sense cutting them any further IMO. Interest rates are already at their lowest in the post-war period. Further cuts are simply going to make sterling fall even further and hammer savers.

[JB Rugby]

garyhun said:

5 points up to help the pound and my savings

Pretty Please!!!

what he says ^^^

[smack]

-.5%

[scotal]

anonymous said:

[redacted]

A strategy which AD put in place today with "the recession is much worse than we feared" type comments. Handy just on the first day of the BOE meeting is that.

I think -0.5%

[Mr Whippy]

JB Rugby said:

garyhun said:

5 points up to help the pound and my savings

Pretty Please!!!

what he says ^^^

Fine by me too, for 28 months, then they can lower them again

Might shake out the remaining toxic debts too, as there is still lots hiding out there I would imagine.

Edited by Mr Whippy on Wednesday 7th January 16:01

[Silver993tt]

I fancy a large cut since I've got a large bunch of Euros I plan to exchange into Sterling

[emicen]

anonymous said:

[redacted]

...and your core voters are the muppets sitting on 125% mortgages on their RTB ex-council houses with sweet FA savings to speak of.

However, regarding exchange rates, I have seen a lot of commentary that the dollar could be in for a royal thumping in 2009 and when the Euro zone properly fall in to recession, ie when France/Spain stop lying about it and Germany fully feel the effects of nobody buying cars, we'll see how strong the Euro stays against the pound.

In a very rare moment of optimism from me, all is not lost on that front I think.