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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:
"The Bank of England today announced it is holding the base rate at its 0.5% historic low for the 26th consecutive month ..."
"The Bank of England today announced it is holding the base rate at its 0.5% historic low for the 26th consecutive month ..."
Read the full story:
Base rate held at 0.5%
This thread is not in the 'discuss house prices and economy board' as that is only open to those logged into the forum so anyone coming from the news story may not be able to see it.
Base rate held at 0.5%
This thread is not in the 'discuss house prices and economy board' as that is only open to those logged into the forum so anyone coming from the news story may not be able to see it.
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Comments
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inflation's at 4% approx so unless you earn at least the same on a savings interest rate - you are losing money!
I'm not in favour of the squeeze being put on people with mortgages/debts (I have a mortgage myself) but at the same time...savers are being neglected and yet they're the ones who paid for the debt others got into...subsidised by savers and are continuing to pay the price as debts are being held cheap while savings dwindle...
rant over
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I agree with what you have said, but it's not all about savers and debtors.
It's also about business which you did not include.
Personally I don't have a huge amount of sympathy for savers.
If they are unhappy with their lot then they have other choices.
There is a wide variety of investments available and some of them have been inflation linked.
I realise we are between a rock and a hard place but there are other things to do with your money other than stick it in a savings account.
I have changed my portfolio accordingly.
I still have some cash (and accept the poor rates in order to get safety and liquidity) but have moved some to other places.
I know there are a number of people without options for example if you are 93 you might not know want to lock you money up long term :-)
However many people do have options at their disposal.
Debtors are largely not to blame for what happened. The banks are.0 -
The ex-debtors that have since resorted to bankruptcy or IVAs are much more problematic.
You mean for the lenders that took a risk?
Sorry not a huge amount of sympathy there either.
Sorry if I'm mis-understood what you were getting at.0 -
the government/boe (interchangeable in my book)...are giving the banks time to recapitalise with the savings interest we're not getting...so the banks don't lose out...nice0
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What's your alternative?so the banks don't lose out
If the banks lose out and business cannot borrow money then it's an issue for the whole economy.
I'm don't understand how the alternative would work. Can you explain it?
Savers do not have a god given right to any particualr rate if they choose a variable product.
Well the obvious answer to me is not to save it then.with the savings interest we're not getting
Invest? spend? perhaps both at the same time.
Why suffer low rates?0 -
No it's not. You're falling into the government trap (aka 'anchoring expectations') of using 'inflation' as a short hand for 'CPI'. RPI is 'inflation'. This is the oldest con in town.electric_comperella wrote: »inflation's at 4% approx so unless you earn at least the same on a savings interest rate - you are losing money!
The added caveat is that all inflation figures are backward looking by definition. The interest rate you earn today should not be compared directly with price rises to last March (or whenever)
In 2009 - while RPI miraculously dipped below CPI on the tails of successive mortgage rate cuts (which dropped out of the index 12 months later) it was dubbed 'inflation' in an orchestrated campaign J Goebbels would be proud of by the press and government even though CPI was the official yardstick for rate setting all along. At the same time, RPI's gyrations were used to talk up the idea of 'deflation' when all along CPI told the truth - that 'inflation' has never fallen even as low as 1%.
The inflation explained (for dummies and central bankers).....under construction.... COVID is a [discontinued] scam0
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