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Interest rates - April 2008
Gorgeous_George
Posts: 7,964 Forumite
With the Bank of England base rate sitting at a modest 5.25% we have people struggling to pay their mortgages while their homes are losing value at a rate of knots.
What can Merv and the rest of the Monetary Policy Committee (MPC) do to stave off a disasterous period for homeowners?
How would you vote?
But for the poll, what do you think the MPC will do?
GG
What can Merv and the rest of the Monetary Policy Committee (MPC) do to stave off a disasterous period for homeowners?
How would you vote?
But for the poll, what do you think the MPC will do?
GG
There are 10 types of people in this world. Those who understand binary and those that don't.
What will the MPC do in April 2008? 92 votes
Up more than 0.25%
1%
1 vote
Up 0.25%
3%
3 votes
Hold at 5.25%
35%
33 votes
Drop by 0.25%
54%
50 votes
Drop by 0.50%
4%
4 votes
Drop by 0.75%
1%
1 vote
Drop by 1.00% or more
0%
0 votes
0
Comments
-
Merv and crew can cut all they want but unfortunately the market has lost faith in the ability of the BOE to control the economy. The market has set the Libor rate which has now lost all connection with the base rate so its irrelevant what the bank does they are now out of the equation and not soon enough. Plus you should keep in mind that house prices are not in the banks remit, their only concern is inflation and look what a disaster they are making of that.0
-
My mortgages track the BofE base rate at +0.74% and 0.89% so I have an interest in the MPC decision.
That said, I agree that their influence on the housing market may be limited.
GGThere are 10 types of people in this world. Those who understand binary and those that don't.0 -
Hi GG,
Yes if you are lucky to have a guaranteed tracker then it will have a direct effect. But some trackers although called trackers actually track the lenders SVR which is influenced by the Libor rate.0 -
What they're likely to do - drop rates by 0.25% (usual political stunt)
What they should do - put rates up by 0.25% and drop their penatly rate by 0.5% (that maybe a bit too close to "walking the walk" though).0 -
Supposed to be independent :rotfl::rotfl::rotfl:0
-
overlander wrote: »Hi GG,
Yes if you are lucky to have a guaranteed tracker then it will have a direct effect. But some trackers although called trackers actually track the lenders SVR which is influenced by the Libor rate.
Don't confuse luck with sound financial awareness.
GGThere are 10 types of people in this world. Those who understand binary and those that don't.0 -
Very true, i think a lot of people are going to pay the price during this credit crunch for just the opposite reason.0
-
Gorgeous_George wrote: »What can Merv and the rest of the Monetary Policy Committee (MPC) do to stave off a disasterous period for homeowners?
Perhaps a sponsored stripathon with the proceeds going to those most effected?
I think they should drop by 1% just for a laugh to see what happens but I think they'll stay as it is because of their inflation target.
Look at me sounding like I know what I'm talking about.
0 -
Libor has never been directly linked to the BOE, we are getting obsessed with the BOE and we need to look at the wider picture. George your only interested because you have a tracker. 1% up or down will not affect mortgages being given at the moment (as in we have a lack of funding, obviously trackers would go up or down), it will only have an impact on trackers that are already running.
The BOE would be better injecting funds, but even then Banks dont want to lend to each other.
I think they should leave it be, we need stability. This is not the US and the problems we face are not the same, yet.0 -
i want it to go up to stave off inflation and give me more returns on my savings accounts :P0
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