BofE Base Rate - October 2008

neverdespairgirl

I've voted 0.25% down, but it could be anything, with all the volatility.

pickles110564

donnalove wrote: »

u must be conservative

pick up bargains at the expense of someone who would lose there home cos of how much there mortgage would rise:mad:
Peeps are already struggling and i dont think its fair that homeowners should get hit hardest. There is no right or wrong way when the country is in such a state but hitting homeowners is not the answer and would stagnate things further.

But why hit at the prudent savers that are keeping this country afloat by cutting interest rates.

Gorgeous_George

pickles110564 wrote: »

But why hit at the prudent savers that are keeping this country afloat by cutting interest rates.

Prudent savers will have locked their savings in to the extraordinarily high rates of recent months.

GG

mewbie_2

Gorgeous_George wrote: »

Prudent savers will have locked their savings in to the extraordinarily high rates of recent months.

GG

He's probably confused between debit and credit - easy mistake.

Heyman_2

I've gone for a 0.25% drop but it wouldn't surprise me if they hold them again.

Realistically - with all the turmoil going on I think they'll be too scared to take any decisive action.

If they did a 1% or 2% hike/drop, then without exaggeration I think Mervyn King would be found dead in the woods.

pizzagirl

I hope for a raise in interest rates but don't expect one. If rates are reduced we'll pay for it in years to come in the form of raging inflation.

epz_2

BOE rates bear no relation to lending rates, thats why the americans didnt bother cutting rates. that said I wouldnt put it past them cutting as a pointless political guesture.

Ian_Griffiths_Halifax

epz wrote: »

BOE rates bear no relation to lending rates.

They do if you have a Base Rate Tracker.

Generali

mewbie wrote: »

He's probably confused between debit and credit - easy mistake.

Why? It's easy to lock in current interest rates for many years by buying Gilts for example.

Generali

Ian_Griffiths_Halifax wrote: »

They do if you have a Base Rate Tracker.

I thought that too but it seems that it's not true.

The Base Rate that most trackers track is the Mortgage Bank's base rate, not the Bank of England's. Normally they are the same but they needn't be. If the cost of funding (Libor and savings rates) was to remain substantially above the base rate for a long time the banks may decide to change their base rate unilaterally.

Bankers may be stupid but they're not dumb!