BofE Base Rate - October 2008

Dan:_4

wolfman wrote: »

It has peaked? Are you sure. Last time I checked it had increased. You can only compare with previous figures, and they're still increasing.

There has been various reports lately suggesting inflation is now easing.

ManAtHome

I think they'll hold again this month and see how (a) inflation, and (b) LIBOR, and (c) the latest Dumper Truck of Dosh auctions work out.

Ian_Griffiths_Halifax

I've gone for a .25% drop. I think they'll be looking for the 'feel good factor' to boost spending. I don't know if that makes sense, but everything they've tried until now has failed, so why not.

I'm glad I'm fik and don't understand.

Gorgeous_George

Ian_Griffiths_Halifax wrote: »

I'm glad I'm fik and don't understand.

You're in good company.

GG

Plasticman

Dan: wrote: »

There has been various reports lately suggesting inflation is now easing.

True, but all of the reports that I have seen stem from the Bank of England. Not sure how much of it is fact and how much of it is to calm the masses!

I am personally expecting a drop, but given the difficult balancing act that is needed (and that the BofE still seem to be working on a 'wait and see' policy) I don't think that it will be more than 0.25pc

beingjdc

Dan: wrote: »

Funnily enough I would rather have 100 quid off my mortgage every month then an extra 9p on a loaf of bread.

If your mortgage interest is over 50% of your total spending, that's your own silly fault, not mine.

I'd rather have more interest on the savings I have prudently put aside for the bad times, and cheaper food / electricity, thanks.

Dan:_4

beingjdc wrote: »

If your mortgage interest is over 50% of your total spending, that's your own silly fault, not mine.

It isn't.

beingjdc wrote: »

I'd rather have more interest on the savings I have prudently put aside for the bad times, and cheaper food / electricity, thanks.

Im sure you would.

beingjdc

Dan: wrote: »

It isn't.

Well then lower general prices is good for you too, even if it means mortgage rates have to be at the current sensible level close to their historic average.

Dan:_4

beingjdc wrote: »

Well then lower general prices is good for you too, even if it means mortgage rates have to be at the current sensible level close to their historic average.

Of course lower general prices would be good, for everyone. However, lower mortgage repayments would be even better.

beingjdc

Dan: wrote: »

Of course lower general prices would be good, for everyone. However, lower mortgage repayments would be even better.

Why is something that's good for a few better than something that's good for everyone? People with mortgages are a minority. People who buy food, or heat their homes, are pretty much everyone.