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MSE News: Base Rate held at 0.5%
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Former_MSE_Guy
Posts: 1,650 Forumite
This is the discussion thread for the following MSE News Story:
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Base Rate held at 0.5%
Base Rate held at 0.5%
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12:00 10Sep09 BANK OF ENGLAND MAINTAINS BANK RATE AT 0.5 PCT
12:01 10Sep09 BoE keeps rates unchanged, 175 bln stg QE in place
LONDON, Sept 10 - The Bank of England left
interest rates at a record low of 0.5 percent for the sixth
month running on Thursday and said it would keep its 175 billion
pound asset buying programme in place.
Most analysts had predicted status quo after last month's
shock decision to raise the amount of money the BoE is printing
to support the economy -- quantitative easing -- by 50 billion
pounds.
But some strategists had seen an outside chance it would
either lift the total again -- Governor Mervyn King had wanted
even more QE last month -- or cut the interest rate it pays
banks holding reserves with it, to encourage them to lend rather
than park money at the central bank.
The economic newsflow has been a bit brighter since the
BoE's last meeting -- house prices jumped another 0.8 percent
last month, according to the Halifax index on Thursday -- and
the FTSE-100 index of leading shares is above 5,000 for the
first time in 11 months.
Policymakers remain concerned, however, about the durability
of any recovery after Britain's deepest downturn in decades.
Output in the second quarter of this year was 5.5 percent
lower than a year ago and most commentators are predicting only
slow growth through 2010 with unemployment rising for some time
to come.Please take the time to have a look around my Daughter's website www.daisypalmertrust.co.uk
(MSE Andrea says ok!)0 -
Sweet! Means my savings interest rates are less likely to drop again.0
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The Bank of England left
interest rates at a record low of 0.5 percent for the sixth
month running on Thursday and said it would keep its 175 billion
pound asset buying programme in place
What a boring bunch these MPC'ers are !!!! :eek:'In nature, there are neither rewards nor punishments - there are Consequences.'0 -
Please take the time to have a look around my Daughter's website www.daisypalmertrust.co.uk
(MSE Andrea says ok!)0 -
As a borrower on a tight budget rather than a saver, it's a welcome reprieve for me.
I came off my fixed rate (no hope of re-mortgaging) a few weeks ago and it's been a softish landing for me so far. The first month my mortgage was about £130 down on the fixed rate and for the next three months, it will be about £160 down. Just as well because I am coming to a time of year where there are heavy outlays and I need to spend loads on an essential vehicle repair next week. My mortgage payment will fluctuate a bit even with a stable base rate because it is based on LIBOR.0 -
Bored_Poster wrote: »what do you mean no hope of remortgaging? Who was your previous fix with?
Maybe he/she aint got the LTV0 -
Bored_Poster wrote: »They are offline, they need to contact their current mortgage provider, they will probably offer them another fix.
Unlikely if they have less then 10% equity. or with NR.0 -
Bored_Poster wrote: »what do you mean no hope of remortgaging? Who was your previous fix with?
Amber which passed it on to Redstone (I've since found out that they do this a lot).
Currently, I am just about on even equity because house prices have dropped since I last fixed. I may even be a small way into negative equity. I have a lot of unsecured debt (as per sig). Although my income has increased substantially over the past 2 - 3 years, it would still be a little short of reaching the 3.5x annual income so there would be a need to self cert. To self cert these days, a large deposit is needed (or large equity) which I don't have. Also, unsecured debt gets taken into account. It is my intention to have the unsecured debt paid off by the summer of 2012. However, my age would be counting against me too I feel.
It's no problem so long as the LIBOR rate stays at a lowish level. Realistically, I need to reduce my unsecured debt as far as possible before rates start climbing again so that I have some room to maneouvre. It's not pretty but I am getting away with it because I only have myself to look after, I have learned to start living very frugally (with the help on this board), and I am self-employed in a business that has not been affected much so far by recession. If I lose a few customers, new ones just seem to come along. If they don't, I can do some door knocking and get some more.0 -
Bored_Poster wrote: »I'd be tempted to go bang.
How do you mean - like shooting yourself?
Or going bankrupt?0 -
Bored_Poster wrote: »The latter sir.
Glad to hear it .
I did consider BR but I worked out a budget for myself after doing an SOA and realised it was doable. It's not pretty but it's working.
Since the start of the year I have managed to reduce my monthly outgoings by about £120 a month and that's just on debt repayments. If I took everything into account, it is nearer £320 (excluding mortgage) with room for more spending cuts to follow. In addition, I have room to up my income as well. So long as no unforeseen disasters befall me during the next several years, I reckon I can get through this.
Also, I know it's not fashionable these days but i do take a view that I borrowed the money so unless I am totally unable to repay it, then I should continue to try my best to do so.0
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